Fiscal Policy Has a Relatively Long ______ Lag, and Monetary

question 61

Multiple Choice

Fiscal policy has a relatively long ______ lag, and monetary policy has a relatively long ______ lag.

• A) inside; outside
• B) outside; inside
• C) inside; inside
• D) outside; outside

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Definitions:

Periodic Adjustment

The regular alteration or correction of something, such as a financial rate, policy, or procedural framework, to ensure effectiveness or to respond to a changing environment.

Cost Of Living

The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare.

Social Security

A government program that provides financial assistance to people with inadequate or no income, especially the elderly and disabled.

Basic Income

A financial security program in which all citizens receive a regular, unconditional sum of money from the government regardless of other income.