Which Statement Is TRUE About the Difference Between Monetary and Fiscal

question 206

Multiple Choice

Which statement is TRUE about the difference between monetary and fiscal policy?

• A) Fiscal policy is more quickly implemented.
• B) There is little debate over the appropriate fiscal policy response.
• C) Monetary policy is subject to long lags.
• D) Monetary policy can affect the economy regardless of the actions banks take.

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Definitions:

Normal

Conforming to a standard; usual, typical, or expected state or condition.

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