The Importance of Timing in Fiscal and Monetary Policy Decisions


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question 1 of 3

Which of the following statements is NOT true regarding fiscal and monetary policy?

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1. What is a policy lag?

2. In general, because of policy lags, which of the following is true?

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About This Quiz & Worksheet

The questions on the quiz will deal with the characteristics and definitions of key concepts and terms related to fiscal and monetary policy decisions. Questions will ask you to choose correct answers from a list of multiple choice possibilities.

Quiz & Worksheet Goals

The quiz tests you on the following topics:

  • Monetary policy
  • Fiscal policy
  • Policy lag
  • Recognition lag

Skills Practiced

The quiz helps you practice these skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on timing in fiscal and monetary policy decisions
  • Making connections - use understanding of the concept of fiscal and monetary policy
  • Interpreting information - verify that you can read information regarding policy lag and interpret it correctly
  • Knowledge application - use your knowledge to answer questions about policy implementation

Additional Learning

You should also read the related lesson, The Importance of Timing in Fiscal and Monetary Policy Decisions. The lesson will help you cover the following topics:

  • Understand the difference between fiscal and monetary policy
  • Define policy lag
  • Explore the types of policy lags
  • Describe the speed of monetary policy