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The implementation lag for fiscal policy is longer than for monetary policy because

jus10n

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5 years ago

The implementation lag for fiscal policy is longer than for monetary policy because

Question 1.

If the government spending multiplier were 3.5, a $2 billion decrease in government spending would lower GDP by

▸ $70 billion after one year.

▸ $2 billion after two years.

▸ $1.5 billion after one year.

▸ $7 billion after one year.

Question 2.

The implementation lag for fiscal policy is longer than for monetary policy because

▸ it takes longer for the Fed to act than Congress.

▸ it takes longer for Congress to act than the Fed.

▸ fiscal policy changes more quickly affect behavior than monetary policy changes.

▸ monetary policy changes more quickly affect behavior than than fiscal policy changes.

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

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Woo

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5 years ago

More solutions for this book are available here

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jus10n Author

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5 years ago

Thanks

paulinaibarra98

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Yesterday

Good timing, thanks!

fgarza2146

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2 hours ago

Helped a lot

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