Which is considered a strength of monetary policy compared to fiscal policy?
A)the ability to increase the velocity of money
B)the ability to decrease the velocity of money
C)its cyclical asymmetry.
D)its protection from political pressure.

Question

Quizplus · Accepted Answer

Monetary policy is typically conducted by independent central banks, which are shielded from political pressure. This allows them to make decisions based on economic factors rather than the desires of politicians seeking reelection. Fiscal policy, on the other hand, is determined by governments and subject to political pressure, which can lead to less effective policy decisions.

Which Is Considered a Strength of Monetary Policy Compared to Fiscal