The implementation lag for fiscal policy is longer than for monetary policy because
A) it takes longer for the Fed to act than Congress.
B) it takes longer for Congress to act than the Fed.
C) fiscal policy changes more quickly affect behavior than monetary policy changes.
D) monetary policy changes more quickly affect behavior than than fiscal policy changes.

Question

Quizplus · Accepted Answer

Fiscal policy involves the actions of Congress and the President, which can take time to deliberate and implement, whereas monetary policy is controlled by the Federal Reserve, which can act more quickly.

The Implementation Lag for Fiscal Policy Is Longer Than for Monetary