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1. The primary tools of fiscal policy are
A. government expenditure and money supply
B. government expenditure and taxation
C. money supply and money demand.
D. taxation and interest rates
2. In a typical year, changes in government spending compared to overall spending are relatively
A. well-timed.
B. large.
C. unpredictable.
D. small.
3. The time necessary for Congress to propose and pass a fiscal policy plan is called a(n)
A. legislative lag.
B. recognition lag.
C. implementation lag.
D. Each of these answers is correct.
4. The time necessary for a fiscal policy plan to have an impact is called a(n)
D. None of these answers is correct.
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