Asked by
Preeti Singh
on Nov 16, 2024
Verified
A significant lag for monetary policy is the time it takes to for a change in the money supply to change the economy. A significant lag for fiscal policy is the time it takes to pass legislation authorizing it.
Monetary Policy
Actions by a central bank or other regulatory authority to influence a nation's money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
Fiscal Policy
Government policies related to taxation and public spending with the aim of influencing economic conditions, including growth, inflation, and unemployment rates.
Legislation
Laws and statutes that are enacted by a legislative body through its legislative process.
- Comprehend the impact of alterations in monetary policy on the economy over both short and extended periods.
- Comprehend the impact of fiscal policy on the economy, primarily in the short term.
Verified Answer
HM
Learning Objectives
- Comprehend the impact of alterations in monetary policy on the economy over both short and extended periods.
- Comprehend the impact of fiscal policy on the economy, primarily in the short term.