Which of the following statements about monetary policy is true?
A) Unlike fiscal policy, there is no delay between the Fed's enacting a policy and the policy's effects.
B) The Fed's policies tend to take effect more quickly and with less political influence than fiscal policy.
C) Monetary policy has an equal impact on short-term and long-term interest rates.
D) The Fed controls most interest rates directly by telling banks and other financial institutions what interest rate they must charge for common loans.

Question

Quizplus · Accepted Answer

Fiscal policy requires a lengthy decision-making process by the legislature, whereas the Federal Reserve's monetary policy is made independently of the rest of the government.

Which of the Following Statements About Monetary Policy Is True