3
QuizMultiple Choice

Government and the Economy

Question 3 • FL-2106010-M/J Civics B

It can be difficult for fiscal policy to influence the economy in the way the government hopes it will. All of the following are reasons for this EXCEPT:

Answer
A
Banks may not start lending quickly enough to make a difference.
B
Conditions in the economy may have changed by the time the policy is put into action.
C
Taxing and spending solutions take time to work through Congress.
D
There is a time gap between when a big problem begins and when it is recognized as such.

Explanation

Banks’ lending decisions are part of how monetary policy affects the economy, not a delay specific to fiscal policy. The other choices describe common fiscal-policy delays: recognizing a problem, passing tax or spending measures through Congress, and having economic conditions change before the policy takes effect. So the statement about banks not lending quickly enough is the exception.

AI-written and checked against the verified answer.

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