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QUESTION 40 One thing that policy makers often overlook is how quickly fiscal policy can respond...

QUESTION 40

  1. One thing that policy makers often overlook is

    how quickly fiscal policy can respond to changes in economic conditions

    how fiscal policies unintentionally affect individual incentive to work, spend, save and invest

    how fiscal policy affects the price level

    how fiscal policy affects the economy's output

    how voters might respond to a policy that increases taxes

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Answer #1

Option 2. How fiscal policies unintentionally affect individual incentive to work, spend, save and invest.

Explanation: Fiscal policies of the government affects the incentives of people to work, consume, same and invest. Governments often overlook these effects.

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