Question

The ___________ lag for fiscal policy is generally ______ than it is for monetary policy.

Answer 1

The correct answers are implementation and longer.

The implementation lag for fiscal policy is generally longer than it is for monetary policy.

Although fiscal policy and monetary policy have similar time lags, the implementation lag for fiscal policy is generally longer than it is for monetary policy. So the implementation lag for fiscal policy usually is longer than for monetary policy because fiscal policy needs committee hearings in the House of Representatives and the Senate. In the case of monetary policies, the Federal Reserve (the Fed) simply act and make decisions.

Answer 2

The answer is implementation; longer. This is the time lag that occurs after a government coverage designed to accurate an economic trouble has been selected and the actual execution of the coverage. that is based totally the time it takes for government groups, which can be slow and methodical, to carry out the unique coverage.