why-might-expansionary-monetary-policy-be-preferred-over-fiscal-policy-during-a-

Question

Why might expansionary monetary policy be preferred over fiscal policy during a recession?

Accepted Answer

It can be implemented more quickly and directly affects interest rates.

Answer

It reduces government spending, which helps balance the budget.

Answer

It is less effective than fiscal policy in boosting aggregate demand.

Answer

It involves increasing taxes, which boosts government revenue.