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Basic Question 4 of 11

It is probably easier to use monetary policy than fiscal policy. Why?

I. Monetary policy has smaller recognition lags.
II. Monetary policy has smaller implementation lags.
III. Monetary policy has smaller outside lags.
IV. There are fewer forecasting uncertainties with monetary policy.

User Contributed Comments 10

User Comment
zeiad what is the Different between Monetray policy and fiscal policy
reganbaha MP inc or dec money supply
FP inc or dec taxes and govt spending etc.
YOUCANDOIT remember that:
change in budget due to Act of Congress => "discretionary fiscal policy"
change in budget due to change in GDP => "automatic fiscal policy"
gill15 Its not possible to not know the difference unless you skipped the first 6 sections of the chapter...
Shaan23 Zeiad must be randomly selecting questions.
ldfrench Better tell, zeiad, to "BUG OFF" becuz we don't tolerate any slackerz around here, right u guyz?!
Inaganti6 zeiad is trolling haha
maryprz14 zeiad; SERIOUSLY??!!
dbedford What is this webisite for?
khalifa92 all hail spaghetti monster
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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

explain the implementation of fiscal policy and difficulties of implementation as well as whether a fiscal policy is expansionary or contractionary

CFA® 2024 Level I Curriculum, Volume 1, Module 3.