One of the advantages of monetary policy over fiscal policy is that
A) monetary policy must be approved by Congress, which prevents bad monetary policy from taking effect.
B) monetary policy does not produce inflation, whereas fiscal policy does.
C) the Fed can react more quickly than the legislature can.
D) monetary policy allows the Fed to limit government spending so that government budget deficits are reduced.

Question

Quizplus · Accepted Answer

The legislature must go through a time-consuming policy-making process, whereas the Fed can meet and decide immediately if necessary.

One of the Advantages of Monetary Policy Over Fiscal Policy