The implementation lag for monetary policy requires
A) congressional changes in spending and taxes.
B) rather immediate changes in open market operations.
C) changes in state funding rebates.
D) changes in exports and imports.

Question

Quizplus · Accepted Answer

The implementation lag for monetary policy requires rather immediate changes in open market operations. These involve the buying and selling of government securities in order to influence the supply of money and credit in the economy. Congressional changes in spending and taxes (Choice A) are related to fiscal policy, which has a longer implementation lag. Changes in state funding rebates (Choice C) and changes in exports and imports (Choice D) are not directly related to monetary policy implementation.

The Implementation Lag for Monetary Policy Requires