Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Unlike monetary policy, fiscal policy is not subject to lags.
B) Like monetary policy, fiscal policy is also subject to the same types of lags.
C) In general, fiscal policy lags are much shorter than monetary policy lags.
D) Although both monetary and fiscal policies are subject to lags, fiscal policy lags are easier to eliminate.