Which Lag Stems from the Fact That It Takes Time

question 98

Multiple Choice

Which lag stems from the fact that it takes time for people and firms to react to a policy change, to acquire or reduce loans, and to change their level of consumption?

• A) the implementation lag
• B) the recognition lag
• C) the market lag
• D) the impact lag

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Definitions:

Withdrawal Symptoms

Physical and mental symptoms that occur after stopping or reducing intake of a substance that was used heavily and regularly.

Tremors

Involuntary, rhythmic muscle contractions resulting in shaking movements in one or more parts of the body.

Nausea

A sensation of unease and discomfort in the stomach with an urge to vomit.

Substance Use Disorder

A condition characterized by an uncontrollable use of substances despite harmful consequences, leading to significant impairment or distress.