What Is the Reason That Stabilization Policies Do Not Have

question 59

Multiple Choice

What is the reason that stabilization policies do not have an immediate effect on an economy?

• A) Consumers are slow to catch up on spending.
• B) There is a time lag for policies to take effect.
• C) Imports come into the country too fast.
• D) Exports often are not shipped fast enough.

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Definitions:

Adjustable Rate Mortgages

A type of mortgage loan in which the interest rate can change over time, based on changes in a reference interest rate or index.

Expansionary Monetary Policy

A form of economic policy that aims to increase the money supply and reduce interest rates to stimulate economic growth.

Economic Stability

Economic Stability is a condition in which an economy experiences constant growth, moderate inflation, and low unemployment rates over time.

Policy Shifts

Changes in governmental strategies, regulations, or guidelines that influence the economic, social, or political landscape.