Question

The existence of lags: A. makes discretionary fiscal policy more effective than automatic stabilizers. B. makes monetary policy more effective than fiscal policy. C. makes both fiscal and monetary policy more challenging to implement. D. makes fiscal policy more effective than monetary policy. E. makes both fiscal and monetary policy more effective.

Answer 1

C. makes both fiscal and monetary policy more challenging to implement.

Step-by-step explanation:

The existence of lags makes both fiscal and monetary policy more challenging to implement.