It is ________ difficult to effectively time fiscal policy than monetary policy because ________.
A)more; fiscal policy can be quickly decided and changed
B)more; fiscal policy takes longer to implement
C)less; monetary policy takes longer to decide and change
D)less; monetary policy takes longer to implement

Question

Quizplus · Accepted Answer

Fiscal policy involves changes in government spending and taxation, which can take longer to implement due to the necessary legislative and administrative procedures. Monetary policy, on the other hand, involves changes in interest rates and money supply, which can be decided and implemented relatively quickly by the central bank. Therefore, it is more difficult to time fiscal policy effectively compared to monetary policy.

It Is ________ Difficult to Effectively Time Fiscal Policy Than