Respuesta :
The time lag for monetary policy is typically shorter than the time lag for fiscal policy.
What is Monetary or Fiscal Policy Time Lag?
Monetary policy changes normally take a certain amount of time to have an effect on the economy. The time lag could span anywhere from nine months up to two years.
Fiscal policy and its effects on output have a shorter time lag. When monetary policy attempts to stimulate the economy by lowering interest rates, it may take up to 18 months for evidence of any improvement in economic conditions to show up. Additionally, if the government changes its fiscal policy and chooses to increase spending, for example, the fiscal stimulus may still take several months to have any effect on the economy.
Therefore, we can conclude that the correct option is A.
Your question is incomplete, but most probably your full question was:
The time lag for monetary policy is typically ________________ the time lag for fiscal policy. Select one:
a. shorter than
b. longer than
c. about the same as
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