Compared to monetary policy,fiscal policy
A) has a shorter decision lag
B) is used for more purposes and seeks to achieve more goals
C) is a more flexible tool for stabilization
D) is less likely to be offset by changes in household or firm behavior
E) is not subject to as much information lag

Question

Quizplus · Accepted Answer

Fiscal policy is a broader tool than monetary policy as it is used for more purposes and seeks to achieve more goals such as economic growth, employment, and price stability. Monetary policy, on the other hand, is mainly concerned with controlling inflation and stabilizing the economy through interest rate adjustments.

Compared to Monetary Policy,fiscal Policy