One of the advantages of monetary policy over fiscal policy is that
A. monetary policy allows the Fed to limit government spending so that government budget deficits are reduced.
B. monetary policy must be approved by Congress, which prevents bad monetary policy from taking effect.
C. the Fed can react more quickly than the legislature can.
D. monetary policy does not produce inflation, whereas fiscal policy does.
Answer: C
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The Bank of Techland is the largest bank in Techland. Which of the following is likely to be true if this bank fails?
A) Real interest rates in Techland will fall. B) Labor supply in Techland will fall. C) Real wages in Techland will remain unchanged. D) Techland's output will fall.
If a consumer is buying three goods A, B, and C, then she will be in equilibrium when total utility from each good is equal
a. True b. False Indicate whether the statement is true or false