Which of the following is the order of fastest to slowest acting policy, once enacted, in affecting aggregate demand?

Question

Quizplus · Accepted Answer

Government spending directly injects money into the economy, therefore it is the fastest acting policy. Taxes have to go through the government and may take time to be implemented, so they are slower than government spending. Money policy, such as changing interest rates, takes even longer to have an effect on aggregate demand.

Which of the Following Is the Order of Fastest to Slowest