If an Economic Disturbance Is Known to Be Transitory

question 49

Multiple Choice

If an economic disturbance is known to be transitory,

• A)discretionary monetary policy should be undertaken because of its short outside lag
• B)discretionary fiscal policy should be undertaken because of its short inside lag
• C)consumption is likely to be significantly affected
• D)policy makers should proceed cautiously, since there is always the possibility that any policy action may itself be destabilizing
• E)none of the above

---

Definitions:

Intangible

Describes something that cannot be physically touched or measured, such as services, brand reputation, or intellectual property.

Reliability

The degree to which a service, tool, or system consistently performs according to its intended or required outcome without failure.

Responsiveness

The speed and quality with which an organization reacts to customer inquiries, complaints, or orders.

Assurance

A guarantee or pledge, often used in the context of service quality, ensuring customer satisfaction.