The implementation lag for monetary policy is
A) shorter than the implementation lag for fiscal policy.
B) longer than the implementation lag for fiscal policy.
C) the same length a the implementation lag for fiscal policy.
D) the same length as the recognition lag for monetary policy.

Question

Quizplus · Accepted Answer

The implementation lag for monetary policy is generally shorter than that for fiscal policy because changes in monetary policy (such as adjustments in interest rates or reserve requirements) can be enacted more swiftly by central banks, whereas fiscal policy changes (involving government spending and taxation) often require legislative approval, which can take more time.

The Implementation Lag for Monetary Policy Is