Which Lag Affects Monetary Policy the Most

question 33

Multiple Choice

Which lag affects monetary policy the most?

• A) the time to get legislation passed
• B) the time to implement a change in the interest rate
• C) the time it takes for an interest rate change to affect the economy
• D) the time it takes to observe the change in longer term interest rates

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Definitions:

Hypothesis

A proposed explanation for a phenomenon, which can be tested through experimentation and observation.

P-value

A measure in statistical hypothesis testing representing the probability of obtaining test results at least as extreme as the ones observed during the test, assuming the null hypothesis is true.

Proportion

A part, share, or number considered in comparative relation to a whole.

Census Data

Detailed information gathered about a population, typically including demographics, employment status, and housing conditions, collected during a census.