Monetary and fiscal policy are similar in that they both:
A) influence government spending and taxation.
B) have time-lags associated with the impact of the policy.
C) result in a shift of the Phillips curve to the right.
D) have policy determined by the minister of finance.

Question

Quizplus · Accepted Answer

Both monetary and fiscal policies have time-lags associated with their impact, as it takes time for the effects of these policies to be felt in the economy.

Monetary and Fiscal Policy Are Similar in That They Both