The Central Bank Reserve Plays a Larger Role Than the Government

The central bank Reserve plays a larger role than the government in stabilizing the economy because

A) changes in interest rates have their full effect on the economy in a short period of time, whereas changes in government spending and taxes have their full effect over a long period of time.
B) the central bank can immediately recognize when real GDP is below or above potential GDP.
C) the central bank can more quickly change monetary policy than the government can change fiscal policy.
D) changes in interest rates have a considerably larger effect on the economy than changes in government purchases or taxes.