Lag Times in Monetary and Fiscal Policy
How do implementation lag times differ between monetary and fiscal policy?
A
Fiscal policy can be implemented more quickly because Congress can enact legislation during a single session.
B
Monetary policy can be implemented more quickly because the central bank uses computers, whereas the government does not.
C
Fiscal policy can be implemented more quickly because the federal government maintains direct oversight of the Federal Reserve.
D
Monetary policy can be implemented more quickly because the Federal Reserve can make policy decisions in a single meeting.
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