Which of the following is correct?

A. Policy lags are normally much shorter for fiscal policy than for monetary policy.
B. Congress usually makes major fiscal policy changes in a fairly short period of time.
C. Expenditure lags are much longer for investment, the main way in which monetary policy affects aggregate demand.
D. Monetary policy affects aggregate demand more quickly than fiscal policy, such as tax or government spending changes.


Answer: C

Economics

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