Question 1
The implementation lag for fiscal policy tends to be much longer than for monetary policy because
◦ monetary changes only require the Fed to act.
◦ fiscal policy changes requires both houses of Congress and the President to act.
◦ fiscal policy usually requires committee hearings in both houses of Congress.
◦ All of these
Question 2
During periods of ________ growth and inflationary pressures, the Federal Reserve will likely decrease the money supply to ________ interest rates.
◦ slow; increase
◦ slow; decrease
◦ high; increase
◦ high; decrease