The implementation lag for monetary policy tends to be much shorter than for fiscal policy for all of the following reasons except
A) fiscal policy changes requires both houses of Congress and the President to act.
B) monetary changes only require the Fed to act.
C) fiscal policy usually requires committee hearings in both houses of Congress.
D) fiscal policy changes only require the Fed to act.

Question

Quizplus · Accepted Answer

Fiscal policy changes require Congressional action, including committee hearings and approval by both houses of Congress and the President. Monetary policy changes, on the other hand, only require action by the Fed, which can implement policy changes relatively quickly.

The Implementation Lag for Monetary Policy Tends to Be Much