Question
Why is the inside lag for monetary policy shorter than for fiscal policy?
A) Congress and the President can act quickly to change monetary policy.
B) The Federal Open Market Committee must get Congressional approval.
C) It can take a long time for new government spending to take effect.
D) The Federal Open Market Committee can act almost immediately.
(A)
A) Congress and the President can act quickly to change monetary policy.
B) The Federal Open Market Committee must get Congressional approval.
C) It can take a long time for new government spending to take effect.
D) The Federal Open Market Committee can act almost immediately.
(A)
Answers
Reed
Nope
Hawk
D) The Federal Open Market Committee can act almost immediately.