Which of the Following Is One Reason for the Existence

question 68

Multiple Choice

Which of the following is one reason for the existence of policy lags?

• A)Government experts are slow in figuring out what is going on.
• B)Households and firms plan their spending in advance and therefore are slow in responding to changes in interest rates.
• C)It is impossible to build an accurate model of the economy.
• D)It is difficult for the Bank of Canada to change the bank rate.

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Definitions:

Last Clear Chance

A doctrine in tort law that allows a plaintiff to recover damages even if they were partially at fault, if the defendant had the final opportunity to avoid the harm but failed to do so.

Strict Liability

A legal doctrine in tort law that makes a person or entity responsible for damages or harm caused, regardless of negligence or fault.

Defective Condition

A flaw in a product that makes it unsafe for its intended or reasonably foreseeable use.

Abnormally Risky

Refers to activities or operations that inherently involve a higher than normal risk of causing harm to others or the environment, typically requiring special insurance or safety measures.