Comparing monetary and fiscal policy:
A) fiscal policy has an advantage because it is faster to implement than monetary policy.
B) fiscal policy is easier to implement.
C) monetary policy is easier to implement.
D) history has shown fiscal policy to be more effective at stabilization.

Question

Quizplus · Accepted Answer

Monetary policy is easier to implement compared to the fiscal policy as it involves adjustments in interest rates, reserve requirements, and open market operations conducted by the central bank. Fiscal policy, on the other hand, involves changes in government spending and taxation, which may require the approval of the legislative bodies and may take longer to implement.

Comparing Monetary and Fiscal Policy