In General, What Is the Longest Lag for Fiscal and Monetary

question 68

Multiple Choice

In general, what is the longest lag for fiscal and monetary policy?

• A) For both fiscal and monetary policy, it is the time it takes to change policy.
• B) For both fiscal and monetary policy, it is the time it takes for policy to affect aggregate demand.
• C) For monetary policy, it is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand.
• D) For fiscal policy, it is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand.

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Definitions:

Analogue Study

An investigation or experiment that replicates real-world conditions in a controlled setting to understand behaviors or phenomena.

Epidemiological

Pertaining to epidemiology, which is the study of the distribution and determinants of health-related states or events in specific populations.

Single-Subject

A research design focusing on the response of a single participant, allowing for detailed observation and analysis of individual behavior.

Medication-Withdrawal

The physical or psychological symptoms that occur upon reducing or stopping the intake of a drug that the body has become dependent on.