Question 1
The implementation lag for monetary policy tends to be much shorter than for fiscal policy for all of the following reasons
except
◦ fiscal policy changes requires both houses of Congress and the President to act.
◦ monetary changes only require the Fed to act.
◦ fiscal policy usually requires committee hearings in both houses of Congress.
◦ fiscal policy changes only require the Fed to act.
Question 2
During periods of slow growth, the Federal Reserve will likely
◦ increase the money supply to increase interest rates.
◦ increase the money supply to decrease interest rates.
◦ decrease the money supply to increase interest rates.
◦ decrease the money supply to decrease interest rates.