One of the timing problems with fiscal policy is an "operational lag" that occurs between the:
A. time the need for fiscal action is recognized and the time that action is actually taken.
B. beginning of a recession and the time that it is recognized that the event is occurring.
C. time that fiscal action has an impact on output, employment, and the price level and the time by which it can be determined if the policy is effective.
D. time that fiscal action is taken and the time that action has an impact on output, employment, and the price level.
Answer: D
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Indicate whether the statement is true or false
Convertible shareholders can
a. convert their shares into bonds at any time b. convert their shares into preferred stock at any time c. convert their shares in one corporation to shares in another corporation in a one-to-one ratio at any time d. convert their shares into common stock at any time e. vote at shareholder meetings on important corporate matters