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

---

Definitions:

Prediction Interval Estimate

An estimate of an interval in which future observations will fall, with a certain probability, given what has already been observed.

Confidence Interval Estimate

A range of values defined so that there is a specified probability that the value of a parameter lies within it.

Coefficient Of Determination

A statistical measure that assesses the proportion of variance in the dependent variable predictable from the independent variable(s).

Coefficient Of Correlation

A numerical measure that quantifies the strength and direction of a linear relationship between two variables.