What Are the Three Types of Monetary Policy Lags

question 77

Multiple Choice

What are the three types of monetary policy lags?

• A) the recognition lag, the identification lag, and the implementation lag
• B) the recognition lag, the inflation lag, and the impact lag
• C) the recognition lag, the implementation lag, and the government lag
• D) the recognition lag, the implementation lag, and the impact lag

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Definitions:

After-Tax Return

The profit realized on an investment after accounting for any taxes paid.

Federal and Provincial Tax Rates

The individual income tax rates imposed by the federal government and provincial governments in Canada, varying based on income level and location.

Corporate Bonds

Debt issued by corporations and exposed to default risk. Different corporate bonds have different levels of default risk, depending on the issuing company’s characteristics and on the terms of the specific bond.

Return on Invested Capital (ROIC)

A profitability ratio that measures the return that an investment generates for those who have provided capital, either debt or equity.