In comparison with fiscal policy, monetary policy faces:
A)recognition lag, administrative lag, but avoids operational lag.
B)recognition lag, administrative lag, and operational lag.
C)recognition lag, operational lag, but avoids administrative lag.
D)administrative lag, operational lag, but avoids recognition lag.

Question

Quizplus · Accepted Answer

Monetary policy faces recognition and operational lags but typically avoids administrative lag because decisions can be made more quickly by central banks without the need for legislative approval.

In Comparison with Fiscal Policy, Monetary Policy Faces