According to Baumol and Blinder, the lag between the time a policy is implemented and the...
According to Baumol and Blinder, the lag between the time a policy is implemented and the time it affects aggregate demand is
|
a. |
longer for fiscal than monetary policy. |
|
|
b. |
longer for monetary than fiscal policy. |
|
|
c. |
approximately equal for both. |
|
|
d. |
influenced mainly by the size of the multiplier. |
Homework Answers
Answer
Option b
longer for monetary than fiscal policy
the fiscal policy gets in to effect faster than the monetary policy as the fiscal policy effect directly to the AD and monetary poly indirectly.
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According to Baumol and Blinder, the lag between the time a
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