Question 1
Time lags mean that
◦ fiscal policy is more effective than monetary policy.
◦ economic policy may be inappropriate when it takes effect.
◦ economic policy will be ineffective.
◦ monetary policy is more effective than fiscal policy.
Question 2
The implementation lag for monetary policy is
◦ shorter than the implementation lag for fiscal policy.
◦ longer than the implementation lag for fiscal policy.
◦ the same length a the implementation lag for fiscal policy.
◦ the same length as the recognition lag for monetary policy.