Question

The main argument against using active policymaking is that

A. the Fed may offset fiscal policy.
B. time lags make it very difficult to judge when the policy will have an effect.
C. passive policymaking is destabilizing.
D. foreign economies can easily counter the policy undertaken by the U.S. government or Fed.

Answer 1

B. time lags make it very difficult to judge when the policy will have an effect

Step-by-step explanation:

Answer 2

B. time lags make it very difficult to judge when the policy will have an effect.

Step-by-step explanation:

The main argument against using active policymaking is that time lags make it very difficult to judge when the policy will have an effect.