All of the Following Are Sources of the Impact Lag

question 49

Multiple Choice

All of the following are sources of the impact lag except

• A) it takes some time for the deposit multiplier process to work itself out.
• B) firms need some time to respond to the monetary policy with respect to their investment plans.
• C) it takes time for the Fed to formulate a policy that best addresses a problem in the economy.
• D) a monetary change is likely to affect the exchange rate, but that translates into a change in net exports only after some delay.

---

Definitions:

Feeling of Meaning

The subjective experience or sensation that one's life or circumstances have purpose and significance.

Heredity

The passing of traits from parents to offspring through genes, influencing characteristics such as height, eye color, and susceptibility to certain diseases.

Environment

The surrounding physical, biological and socio-economic conditions in which an organism or community lives.

Shaping Development

The process by which behavior is gradually guided toward a desired pattern through positive reinforcement of successive approximations to the target behavior.