In general, monetary policy has a ________ response lag than fiscal policy and a ________ implementation lag.
A) shorter; shorter
B) longer; longer
C) longer; shorter
D) shorter; longer

Question

Quizplus · Accepted Answer

Monetary policy typically has a longer response lag than fiscal policy, meaning that it takes longer for changes in interest rates to have an impact on the economy. However, it also typically has a shorter implementation lag than fiscal policy, as it can be implemented by the central bank more quickly and easily than changes to government spending or taxation.

In General, Monetary Policy Has a ________ Response Lag Than