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Trivia Question

Raghuram G. Rajan in Fault Lines: How Hidden Fractures Still Threaten the World Economy writes that because the U.S. has a weak social safety net, during recessions it usually undertakes a discretionary stimulus. All of the following are disadvantages of a discretionary stimulus, except:




Choose the correct answer:

the unemployed don't know if they will be supported by the stimulus, and when stimulus causes companies to forego capital investments policy made in the midst of a downturn is often hurried and opportunistic fiscal stimulus often lags; money to build a road will be voted on now, but not spent until a year from now
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