Unlike monetary policy, ﬁscal policy does not operate with a time lag.

Name: Unlike monetary policy, ﬁscal policy does not operate with a time lag.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Fiscal policy typically involves government spending and taxation decisions that can take time to implement and have an impact on the economy. Therefore, there can be a time lag between the decision to implement fiscal policy and its actual effects on the economy.

Unlike Monetary Policy, ﬁScal Policy Does Not Operate with a Time