CFA Practice Question

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CFA Practice Question

Which of the following is a timing problem associated with discretionary fiscal policy?

I. Recognizing the existence of a macroeconomic problem
II. Enacting the appropriate enabling legislation
III. Initiating a change in aggregate demand
Correct Answer: I, II and III

Recognizing the existence of a macroeconomic problem, negotiating the appropriate political solution, and initiating a change in aggregate demand at the appropriate time are all problems in timing discretionary fiscal policy.

User Contributed Comments 3

User Comment
danlan Three are all timing problems.
YOUCANDOIT I) Recognition Lag
II) Action Lag
III) Impact Lag
khalifa92 high ping
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