What is one of the advantages of monetary policy over ﬁscal policy?
A) its control over the size of Federal budget deﬁcits
B) the quickness with which it can be used
C) the opportunity for broad political inﬂuence
D) It can guarantee an expansion of aggregate demand when needed.

Question

Quizplus · Accepted Answer

Monetary policy can be implemented more quickly than fiscal policy because it involves adjusting interest rates or money supply, which can be done by the central bank without needing approval from other branches of government. Fiscal policy, on the other hand, requires legislation to be passed and implemented, which can take longer.

What Is One of the Advantages of Monetary Policy Over