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

Question

Quizplus · Accepted Answer

All of the options provided are reasons why the implementation lag for fiscal policy tends to be longer than for monetary policy. Monetary policy decisions are made by the Federal Reserve and can be implemented more quickly, whereas fiscal policy changes often require approval from both houses of Congress and the President, and may involve committee hearings, making the process lengthier.

The Implementation Lag for Fiscal Policy Tends to Be Much