Recognition Lag,implementation Lag,and Impact Lag Are All Examples of

question 158

Multiple Choice

Recognition lag,implementation lag,and impact lag are all examples of

• A) crowding-out.
• B) savings shifts.
• C) time lags that accompany policy decisions.
• D) automatic stabilizers.
• E) fiscal policies.

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Definitions:

Overconfidence

A cognitive bias where an individual overestimates their abilities or the precision of their knowledge, often leading to mistakes in judgment.

Behavioral Biases

Psychological tendencies that affect investment decisions and financial behaviors.

Fundamental Risk

Risk that even if an asset is mispriced, there is still no arbitrage opportunity because the mispricing can widen before the price eventually converges to intrinsic value.

Implementation Costs

Refers to the expenses involved in putting a business plan or project into action, including technology, manpower, training, and other related costs.