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.

Answer 1

This is more of an Economics question. The answer is fiscal policy is created by Congress and the President which is very slow. While monetary policy is controlled by the Fed which can act quickly and decisively. So C would be the best answer in my opinion.

Answer 2

C is incorrect.

Answer 3

Is A.

Answer 4

a is wrong

Answer 5

C is wrong too.

Answer 6

B or D?