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
You might also like to view...
All of the following could be covered by patent protection except
A) a newly discovered Beethoven symphony. B) a new variety of hybrid rose bush. C) a hydrogen fuel cell engine. D) a laser hair-removal device.
In the above figure, a price ceiling of $2 would
A) create a shortage. B) create a surplus. C) have no effect. D) cause the demand curve to shift leftward.
The most liquid securities traded in the capital market are
A) corporate bonds. B) municipal bonds. C) U.S. Treasury bonds. D) mortgage-backed securities.
Among the evidence that people do not always make choices that reflect sensible preferences are examples of:
A. choice reversals. B. conformance to the principle of revealed preference. C. compliance with the Ranking Principle. D. All of these provide evidence that people do not always make choices that reflect sensible preferences.