Some Economists and Policymakers Criticized the Fed (The Central Bank

question 81

Multiple Choice

Some economists and policymakers criticized the Fed (the central bank in the United States) for taking too much time understanding and identifying the problems in financial markets which led to the financial crisis of 2007-2009.This criticism best describes the ________ as a limitation of monetary policy.

• A) implementation lag
• B) recognition lag
• C) impact lag
• D) asymmetry lag

---

Definitions:

Action Potential

A short-lasting event in which the electrical membrane potential of a cell rapidly rises and falls, allowing neurons to transmit signals.

Depolarization

Depolarization is a process in nerve cells where the cell membrane's normal negative charge is reduced, allowing an action potential to occur and leading to the propagation of nerve signals.

Electrical Charge

A fundamental property of matter that leads to electromagnetic interactions, described in terms of positive or negative electrical energy.

Nodes of Ranvier

Gaps in the myelin sheath of nerve fibers, which play a critical role in the fast propagation of nerve impulses.