Question

The government lacks flexibility in changing spending and taxes:

A) because the budget process usually begins a year and a half before the fiscal year begins.
B) because nearly two-thirds of government spending is mandated by programs like Medicare and Social Security.
C) because proper fiscal policy sometimes conflicts with the political pressure policymakers face.
D) for all of these reasons.

Answer 1

The government lacks flexibility in changing spending and taxes for all of these reasons.

Step-by-step explanation:

The government lacks flexibility in changing spending and taxes for all of these reasons. First, the budget process usually begins a year and a half before the fiscal year begins, which limits the government's ability to respond quickly to changing economic conditions. Second, nearly two-thirds of government spending is mandated by programs like Medicare and Social Security, leaving less room for discretionary changes. Finally, proper fiscal policy can sometimes conflict with the political pressure policymakers face, making it challenging to make desired changes.