It Might Take a While Before the Effects of Changes

question 41

Multiple Choice

It might take a while before the effects of changes in monetary policy are realized in the economy because it takes considerable time for

• A)the overnight interest rate and longer-term interest rates to adjust.
• B)investment expenditures and net exports to adjust.
• C)government purchases to adjust.
• D)monetary policy to be implemented via open-market operations.
• E)the exchange rate to adjust.

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Definitions:

Ethnomethodologists

Scholars who study how people use everyday interactions to construct a shared social reality.

Institutions

Structures or mechanisms of social order and cooperation governing the behavior of a set of individuals within a given human community.

Ethnomethodological

Pertaining to a sociological approach that studies the methods people use in everyday life to create a sense of social order and understanding.

Institutional Settings

The structured and established environments, including rules, roles, and norms, where organized social, educational, or professional activities take place.