Most economists believe that ﬁscal policy is
A) better than monetary policy for "ﬁne-tuning" the economy.
B) better than monetary policy for month-to-month stabilization.
C) not as good as monetary policy for month-to-month stabilization.
D) not very good at pushing the economy in a particular direction.

Question

Quizplus · Accepted Answer

Fiscal policy involves changes in government spending and taxation, which can take time to implement and may have unintended consequences. In contrast, monetary policy can be used more quickly and effectively to stabilize the economy on a month-to-month basis. However, fiscal policy can be useful in addressing long-term economic issues and can be used to push the economy in a particular direction.

Most Economists Believe That ﬁScal Policy Is