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Q: Why is the inside lag for monetary policy shorter than for fiscal policy? A. Congress and the President can act quickly to change monetary policy. B. The Federal Open Market Committee must get
Congressional approval. C. It can take a long time for new government spending to take effect. D. The Federal Open Market Committee can act almost immediately.
A: The answer is fiscal policy is created by Congress and the President which is very slow. While monetary policy is controlled by the Fed which can act quickly and decisively. So C would be the best answer in my opinion.
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User: Why is the inside lag for monetary policy shorter than for fiscal policy? A. Congress and the President can act quickly to change monetary policy. B. The Federal Open Market Committee must get Congressional approval. C. It can take a long time for new government spending to take effect. D. The Federal Open Market Committee can act almost immediately.

Weegy: The answer is fiscal policy is created by Congress and the President which is very slow. While monetary policy is controlled by the Fed which can act quickly and decisively. So C would be the best answer in my opinion.
my-childish-fears|Points 0|

User: What is the policy used most by the Fed to change the money supply? A. changes in the money creation policy B. changes in the discount rate C. changes in the reserve requirements D. open market operations

User: What is the policy used most by the Fed to change the money supply? A. changes in the money creation policy B. changes in the discount rate C. changes in the reserve requirements D. open market operations

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Asked 8/26/2013 2:44:52 PM
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