What do the legislative and implementation lags have in common?
A)They are both more important for monetary than fiscal policy.
B)They are both more important for fiscal than monetary policy.
C)They are both harder to measure but less variable than the effectiveness lag.
D)They both take place before the data and recognition lags.
E)none of the above

Question

Quizplus · Accepted Answer

Both legislative and implementation lags are generally more significant for fiscal policy than for monetary policy because fiscal policy changes often require legislative approval and time to implement, whereas monetary policy can be adjusted more quickly by central banks.

What Do the Legislative and Implementation Lags Have in Common