Poorly timed discretionary policy can do more harm than good.Getting the timing right with fiscal policy is generally
A)less difficult than with monetary policy.
B)far less difficult than with monetary policy.
C)more difficult than with monetary policy.
D)about the same difficulty as with monetary policy.

Question

Quizplus · Accepted Answer

Fiscal policy often involves the passage of legislation and implementation of government programs, which can take time. This makes it harder to time correctly in response to economic changes compared to monetary policy, which can be adjusted more quickly by the central bank. Additionally, poorly timed fiscal policy can lead to unintended consequences, such as inflation or a worsening of the economic situation.

Poorly Timed Discretionary Policy Can Do More Harm Than Good