The Implementation Lag for Monetary Policy Tends to Be Much

question 50

Multiple Choice

The implementation lag for monetary policy tends to be much shorter than for fiscal policy for all of the following reasons EXCEPT

• A)fiscal policy changes requires both houses of Congress and the President to act.
• B)monetary changes only require the Fed to act.
• C)fiscal policy usually requires committee hearings in both houses of Congress.
• D)fiscal policy changes only require the Fed to act.

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Definitions:

Units

Basic quantities or measures adopted to quantify and express variables in a particular field or for specific goods.

Marginal Rate of Substitution

The rate at which a consumer is willing to give up one good in exchange for another good, while maintaining the same level of utility.

Good Y

A generic term used to denote a particular good or product in economic models.

Units

Refers to a measurement or quantity of something, often used in the context of production, sales, or inventory in various industries.