One advantage of fiscal policy over monetary policy is:
A) speed.
B) flexibility.
C) direct impact on spending.
D) insulation from political decision-making.

Question

Quizplus · Accepted Answer

Fiscal policy, which involves government spending and taxation, has a direct impact on aggregate demand and spending in the economy. This is because it can directly increase or decrease the amount of money in consumers' and businesses' hands, thereby influencing economic activity more directly than monetary policy, which typically works through interest rates and the banking system.

One Advantage of Fiscal Policy Over Monetary Policy Is