Which of the following is considered an advantage of monetary policy compared to fiscal policy?
A) It is blunter and more politically obvious than fiscal policy
B) It does not have any of the time lags of fiscal policy
C) Its relative isolation from political pressure
D) Its cyclical asymmetry

Question

Quizplus · Accepted Answer

Monetary policy is typically implemented by a central bank, which is designed to be independent from political pressure. This allows for monetary policy to be implemented without political interference, which can help ensure that the policy decisions are based on economic factors rather than political considerations. Fiscal policy, on the other hand, is usually determined by elected officials who may be influenced by political pressures and considerations.

Which of the Following Is Considered an Advantage of Monetary