One of the difficulties in implementing monetary policy is the time it takes:
A) to pass new monetary policy once the Fed has decided action is needed.
B) monetary policy to have an effect in the economy once enacted.
C) to enact monetary policy once the Fed has decided action is needed.
D) to get approval from the Congress to implement the policy.

Question

Quizplus · Accepted Answer

Monetary policy takes time to have an effect in the economy once enacted. It can take several months to a year for the effects of changes in interest rates or money supply to be fully felt in the economy. Therefore, the timing of monetary policy implementation must be carefully considered and adjusted to achieve the desired outcomes.

One of the Difficulties in Implementing Monetary Policy Is the Time