The Principal Reason That Monetary Policy Has Lags Is That

question 46

Multiple Choice

The principal reason that monetary policy has lags is that it takes a long time for

• A)changes in the interest rate to change aggregate demand.
• B)changes in the money supply to change interest rates.
• C)the Fed to make changes in policy.
• D)None of the above is correct.

---

Definitions:

Prevalence Rates

The total number of cases of a specific disease or condition in a given population at a designated time.

Inpatients

Individuals admitted to a hospital or medical facility for treatment that requires at least one overnight stay.

Outpatients

Patients who receive medical treatment or undergo procedures without being admitted to the hospital for an overnight stay.

PD Prevalence

The proportion of individuals in a population who have Parkinson's Disease at a specific time.