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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.

Respuesta :

metchelle
The inside lag for monetary policy is shorter than for fiscal policy because the Federal Open Market Committee can act almost immediately. The fiscal policy was created by the Congress and the President that they cannot act quickly. The Federal Open Market Committee is under the Federal Reserve Board and is composed of seven members and five bank presidents.

The answer would be letter D.

Answer:

D

Explanation:

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