Based on the Record of Past Business Cycles as Well

question 42

Multiple Choice

Based on the record of past business cycles as well as Fed behavior,we can estimate that for expansionary monetary policy the overall lag is approximately

• A)eighteen months,about half of which is the effectiveness lag.
• B)twenty months,slightly more than three-quarters of which is the effectiveness lag.
• C)ten months,with less than half due to the effectiveness lag.
• D)nine months,with the effectiveness lag responsible for about six months.

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Definitions:

Handshake

A traditional greeting in which two people grasp and shake each other's hands.

Germans

Refers to the people originating from or associated with the country of Germany.

Handshake

A gesture involving the grasping and shaking of hands, traditionally used to greet someone or seal an agreement.

Geert Hofstede

A Dutch social psychologist known for his work on the comparison of cultures across nations, especially for developing the cultural dimensions theory.