Why is it difficult for policymakers to choose the appropriate strength of their actions? – Essaylink

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A.What are two situations in which most economists view a budget deficit as justifiable?

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B. Some economists say that the government can continue running a budget deficit forever. How is that possible?

C. Some income from capital is taxed twice. Explain.

D. What adverse effect might be caused by tax incentives to increase saving?

E .Policymakers who want to stabilize the economy must decide how much to change the money supply, government spending, or taxes. Why is it difficult for policymakers to choose the appropriate strength of

their actions?

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