The Effects of Any Change in Monetary Policy Lag

question 32

Multiple Choice

The effects of any change in monetary policy lag

• A) in part because they work through changes in the interest rate to alter investment and it takes a long time for investment projects to come to fruition.
• B) in part because they work through changes in the interest rate to alter net exports and it takes a long time for international markets to register the permanence of such a change.
• C) by such a long time that the maximum effect is generally felt one to two years after the policy adjustment.
• D) by such a long time that policy makers are reluctant to make large adjustments for fear of exacerbating a future problem in the event that conditions turn around.
• E) all of the above.

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Definitions:

Videoconferencing

A technology that allows users in different locations to hold face-to-face meetings without having to move to a single location physically.

Telepresence

Technology that allows a person to feel as if they are present, to give the appearance of being present, or to have an effect, somewhere other than their true location.

UC

Unified Communications, which integrates multiple methods of communication, such as email, voice, and video conferencing, into a single interface.

Communication

The act of transferring information from one place, person, or group to another.