Three Policy Lags Limit the Effectiveness of Monetary Policy: Recognition

question 47

Multiple Choice

Three policy lags limit the effectiveness of monetary policy: recognition lags,implementation lags,and impact lags.Of these three policy lags,fiscal policy is impacted by

• A) only implementation and impact lags.
• B) only recognition and implementation lags.
• C) only recognition and impact lags.
• D) all three policy lags.

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