Answer to Question #270167 in Macroeconomics for Audrey

Question

Q.1.18 The implementation lag is ___________ for monetary policy and _____________ for fiscal policy. (2) (1) Extremely short; long; (2) Long; extremely short; (3) Long; long; (4) Long; short. Q.1.19 Creditors and debtors tend to lose during an inflationary period since: (2) (1) The nominal interest rate on their credit tends to fall; (2) The real value of their credit tends to decrease; (3) Debtors pay more in real terms; (4) The real interest rate on their credit remains constant.

Answer 1

The implementation lag is long for monetary policy and short for fiscal policy.