Why is the time lag for making fiscal policy changes longer than for making monetary policy changes?
Both monetary and fiscal policies face forecasting and lag problems, but the Fed can act more quickly than fiscal policies, which must make their way through the Legislative and Executive branches of government.
You might also like to view...
If the real interest rate is 5% and the inflation rate is 3%, then the nominal interest rate is 8%
a. True b. False Indicate whether the statement is true or false
In the Great Recession of 2007-2009, the stock market values shrank, causing a reverse:
A. Wealth effect
B. Real-balances effect
C. Interest-rate effect
D. Expectations effect
Suppose you hedge with a put option. What are the consequences of selecting a put option with a lower strike price?
A. Higher premium, lower price floor. B. Higher premium, higher price floor. C. Lower premium, lower price floor. D. Lower premium, higher price floor.
Acres of LandTanks of FertilizerTruckloads of Potatoes2002820170202105203135204152205141
Refer to Table 2.4. The principle of diminishing returns sets in with the addition of the ________ tank of fertilizer.
A. second B. third C. fourth D. fifth