One of the strengths of monetary policy relative to fiscal policy is that monetary policy
A)can be implemented more quickly.
B)is subject to closer political scrutiny.
C)does not produce a net export effect.
D)entails a larger spending income multiplier effect on real GDP.

Question

Quizplus · Accepted Answer

Monetary policy can be implemented more quickly because it involves decisions made by central banks, which can adjust interest rates or conduct open market operations without the need for legislative approval, unlike fiscal policy which requires government action and can be delayed by political processes.

One of the Strengths of Monetary Policy Relative to Fiscal