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The lag problem associated with fiscal policy is due mostly to the time it takes for changes in government spending or taxes to affect
The lag problem associated with fiscal policy is due mostly to the time it takes for changes in government spending or taxes to affect the interest rate. All of the above are correct. the fact that business firms make investment plans far in advance. the political system of checks and balances that slows down the process of implementing fiscal policy.
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
