Which of the following is true of policy lags?
A) Decision lags are generally longer for fiscal policy than for monetary policy
B) Information lags are usually longer than implementation lags
C) For monetary policy, the decision lag is usually longer than the information lag
D) Altogether, policy lags generally take about 6 months
E) Because they are predictable, implementation lags have no adverse consequences for policy making

Question

Quizplus · Accepted Answer

Fiscal policy often involves legislative processes, which can take longer than the decision-making processes for monetary policy, which are typically handled by central banks.

Which of the Following Is True of Policy Lags