The Type of Lag That Can Be More Serious for Monetary

question 30

Multiple Choice

The type of lag that can be more serious for monetary policy than fiscal policy is

• A) data lag.
• B) recognition lag.
• C) legislative lag.
• D) effectiveness lag.

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Definitions:

Accumulated Depreciation

The total amount of an asset's cost that has been allocated as depreciation expense over its useful life, reducing its book value on the balance sheet.

Asset

Tangible or intangible items of value owned or controlled by a person or company, capable of producing future economic benefits.

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of an asset evenly across its useful life.