What Is One Reason for the Existence of Policy Lags

question 126

Multiple Choice

What is one reason for the existence of policy lags?

• A) Government experts are slow in figuring out what is going on.
• B) Households and firms plan their spending in advance and therefore are slow in responding to changes in interest rates.
• C) It is impossible to build an accurate model of the economy.
• D) It is difficult for the Bank of Canada to change the bank rate in a timely manner.

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Definitions:

Collective Agreement

A written contract negotiated between an employer and a union representing the employees, outlining terms and conditions of employment.

Technical Requirements

Specifications or criteria that must be met by a system, design, product, or service to fulfill its intended purpose.

Cultures

The shared values, beliefs, norms, and practices that define a group, organization, or society, shaping its members' behaviors and interactions.

Leadership Style

Refers to a leader's method of providing direction, implementing plans, and motivating people.