Fiscal policy has a short implementation lag compared to monetary policy.

Name: Fiscal policy has a short implementation lag compared to monetary policy.
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Question

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Fiscal policy involves government decisions on taxes and spending, which require time to be debated and enacted into law. This process can take several months or even years, resulting in a longer implementation lag compared to monetary policies that can be adjusted more quickly by central banks.

Fiscal Policy Has a Short Implementation Lag Compared to Monetary