Answered: Monetary policy is subject to longer…

Monetary policy is subject to longer ________ lags than fiscal policy. A. Decision and information/recognition B. Implementation/effectiveness C. Decision D. Information/recognition

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Money Growth And Inflation

Section: Chapter Questions

Problem 4CQQ

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Question

Monetary policy is subject to longer ________ lags than fiscal policy.

Decision and information/recognition

Implementation/effectiveness

Decision

Information/recognition

Definition Definition Policy implemented by the central bank of a country (such as the Federal Reserve in the United States) to achieve certain macroeconomic objectives. Monetary policy is a supply-side macroeconomic policy that supervises the growth rate and money supply in the economy.

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