Which of the Following Statements Is True

question 134

Multiple Choice

Which of the following statements is true?

• A) Unlike monetary policy, fiscal policy is not subject to lags.
• B) Like monetary policy, fiscal policy is also subject to the same types of lags.
• C) In general, fiscal policy lags are much shorter than monetary policy lags.
• D) Although both monetary and fiscal policies are subject to lags, fiscal policy lags are easier to eliminate.

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Definitions:

Positive Association

A connection between two variables where both rise or fall simultaneously.

Little or No Association

A term used to describe a situation where there is minimal or no statistical relationship between two variables.

Moderately Strong Association

A statistical term indicating a considerable but not perfect relationship between two variables.

Linear Association

The relationship between two variables that can be represented accurately using a straight line in a scatterplot.