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 quickly by adjusting interest rates or the money supply, while fiscal policy often requires more time to pass legislation and implement spending changes.

One of the Strengths of Monetary Policy Relative to ﬁScal