Question

During normal economic​ times, when there is not​ "excessive" unemployment or​ inflation, discretionary fiscal policy

Answer 1

Answer:

The correct answer is D. is probably not very effective due to lags and the uncertainty created by repeated tax policy changes.

Explanation:

Discretionary fiscal policies: are those that governments intentionally apply to influence public revenues or expenses. They have the advantage that they can act directly on the problems but the drawback is that they are usually slow in their application due to the political and institutional procedures required for their implementation. In addition, these policies take time to achieve the objectives and are not always done effectively.