Which Is NOT a Lag Associated with the Implementation of Fiscal

question 178

Multiple Choice

Which is NOT a lag associated with the implementation of fiscal policy?

• A) legislative lag
• B) recognition lag
• C) monetary lag
• D) effectiveness lag

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Definitions:

Credit Policy

Guidelines that a company follows to determine the creditworthiness of customers, the terms of credit to extend, and how to collect payments.

Economic Order Quantity

A calculation used to determine the most cost-effective quantity of inventory to order, minimizing both ordering and holding costs.

Safety Stock

Additional inventory beyond expected demand, kept on hand to prevent stockouts typically caused by uncertainties in supply or demand.

Inventory

The total amount of goods and materials held by a company intended for sale or used in production, crucial for managing supply chains and fulfilling customer orders.