The Difference Between an Inside Lag and an Outside Lag

question 2

Multiple Choice

The difference between an inside lag and an outside lag is best described as:

• A) an inside lag is the time needed for monetary policy to be effective while an outside lag is the time needed for fiscal policy to be effective.
• B) an inside lag is usually much longer than an outside lag.
• C) an inside lag is the time between when a policy change is needed and when the Fed identifies the problem and solution, while an outside lag is the time between a policy decision and its effect on the economy.
• D) an outside lag is the time between when a policy change is needed and when the Fed identifies the problem and solution, while an inside lag is the time between a policy decision and its effect on the economy.

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Definitions:

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Technology that uses microwave radio frequencies to transfer data over distances.

Hotspot

A small geographical perimeter within which a wireless access point provides service to a number of users.

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Without interruption or difficulty; smoothly integrated or connected.

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The collection and wireless transmission of data from remote or inaccessible sources to an IT system for monitoring and analysis.