8. There are some who argue that fiscal policy won't achieve its goals. Which of the following is often given as a reason to explain why fiscal policy may not work? Creates large deficits Incomplete information Sticky Prices Liquidity traps

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Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.