Which of the following is not a sufficient reason for the preference of fiscal policy over monetary policy in a recession?
The implementation lag.

Respuesta :

The implementation lag is not a  sufficient reason for the preference of fiscal policy over monetary policy in a recession.

How Does Implementation Lag Happen?

A fiscal or monetary policy response by the government and central bank is implemented after a negative macroeconomic event, which is known as an implementation lag. Implementation lag can be brought on by various factors, such as a delay in problem recognition, disagreements and haggling over the best course of action, administrative, physical, and technical barriers that prevent the effective implementation of new policies, and structural economic delays that occur as a result of the policy change's propagation through the economy. Implementation lag might lessen the impact of a policy response or even cause procyclical policies to occur for short periods of time.

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