The effectiveness of fiscal policy is limited by:

CA Foundation · Business Economics · MTP · April 2025
The effectiveness of fiscal policy is limited by:
(A) A. Time lags in implementation
(B) B. Lack of flexibility in government expenditure
(C) C. Political constraints
(D) D. All of the above

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. All of the above

Topics: Public Finance

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