The Principal Reason That Monetary Policy Has Lags Is That

question 214

Multiple Choice

The principal reason that monetary policy has lags is that it takes a long time for

• A)changes in the interest rate to change aggregate demand.
• B)changes in the money supply to change interest rates.
• C)the Fed to make changes in policy.
• D)the federal government to change the tax code.

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Definitions:

Increased Job Creation

The process of generating more employment opportunities within an economy or a specific sector.

Competitive Advantage

The unique attributes or circumstances that allow an organization to outperform its competitors.

Tangible Assets

Refers to physical and material assets that an organization owns, such as buildings, machinery, and inventory.

Human Capital

The sum of employees' knowledge, skills, experience, and commitment invested in the organization.