Which of the following is considered an advantage of monetary policy compared to fiscal policy?

Question

Multiple Choice
It is blunter and more politically obvious than fiscal policy.
It does not have any of the time lags of fiscal policy.
It is relatively isolated from political pressure.
It is cyclically asymmetrical.

Answer 1

The correct answer is:

It is relatively isolated from political pressure.

Monetary policy, typically conducted by central banks, can often be implemented more quickly and with less political influence compared to fiscal policy, which involves government spending and tax decisions that are subject to political processes. The other options are not accurate representations of advantages of monetary policy over fiscal policy.