Monetary policy is easier to conduct than fiscal policy becausemultiple choicemonetary policy is easier to understand.monetary policy has a much shorter administrative lag than fiscal policy.the Fed has more control of the economy.the economy responds better to monetary policy than fiscal policy.
Question
Monetary policy is easier to conduct than fiscal policy becausemultiple choicemonetary policy is easier to understand.monetary policy has a much shorter administrative lag than fiscal policy.the Fed has more control of the economy.the economy responds better to monetary policy than fiscal policy.
Solution
The correct answer is: monetary policy has a much shorter administrative lag than fiscal policy.
This is because monetary policy, which is managed by the Federal Reserve, can be adjusted more frequently and quickly in response to economic conditions. Changes in interest rates or money supply can be implemented relatively quickly.
On the other hand, fiscal policy, which involves government spending and taxation, often requires legislative approval and can take a longer time to implement. This can result in a longer administrative lag, making it harder to respond swiftly to changes in the economy.
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