If an increase in income leads to in an increase in the demand for peanut butter, then peanut butter is

What is the essence of the problem of timeliness with fiscal policy?

A. Often there is not enough time to spend all of the money that fiscal policies have authorized. B. If fiscal policy is enacted too quickly, it might not be very well thought out. C. In order for fiscal policy to have an impact and prevent a recession, it needs to happen very quickly. D. The government's budget calendar is very strict and fiscal policy can only be done at certain times in the year.

If expected inflation were 3%, and the real interest rate was 6%, what sector would be worse off if the actual inflation rate turned out to be 5%

a. Businesses. b. Laborers. c. Both. d. None.