Which of the Following Pairs of Lags Are Typically Shorter

question 105

Multiple Choice

Which of the following pairs of lags are typically shorter for monetary policy than for fiscal policy?

• A)The recognition lag and the implementation lag
• B)The effectiveness lag and the decision-making lag
• C)The decision-making lag and the implementation lag
• D)The implementation lag and the effectiveness lag
• E)The recognition lag and the effectiveness lag

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Definitions:

Negotiable

Pertains to documents or instruments that are transferable from one person to another through endorsement or delivery, thereby allowing the holder to take title.

Nonnegotiable

A term describing instruments or securities that cannot be transferred or assigned to another party.

Duress

A condition in which a person performs an act as a result of violence, threat, or other pressure against the person.

Fraudulent Inducement

A legal claim based on a misrepresentation of fact that leads another to enter into a contract or transaction with detrimental reliance on that misrepresentation.