It can be ________ difficult to effectively time fiscal policy than monetary policy because ________.
A)more; fiscal policy can be quickly decided and changed
B)more; fiscal policy takes longer to implement
C)less; monetary policy takes longer to decide and change
D)less; monetary policy takes longer to implement

Question

Quizplus · Accepted Answer

Fiscal policy involves changes in government spending and taxation, which often requires legislative approval and implementation, making it a slower process than monetary policy. Monetary policy, on the other hand, involves changes in interest rates and the money supply, which the central bank can implement relatively quickly. Therefore, it can be more difficult to time fiscal policy effectively.

It Can Be ________ Difficult to Effectively Time Fiscal Policy