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:

Conditioned Response (CR)

The learned response to the conditioned stimulus that occurs after a conditioned stimulus–unconditioned stimulus pairing.

Conditioned Stimulus (CS)

A previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Response (UR)

An unlearned reaction that is automatically elicited by the unconditioned stimulus.

Unconditioned Stimulus (US)

An unconditioned stimulus is any stimulus that naturally triggers a reflexive response without the need for prior learning.