The Major Difference in the Efficacy of Monetary Policy Relative

question 69

Multiple Choice

The major difference in the efficacy of monetary policy relative to fiscal policy is

• A)the longer recognition lag for fiscal policy.
• B)the shorter recognition lag for fiscal policy.
• C)the longer legislative lag for fiscal policy.
• D)the longer data lag for fiscal policy.

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Definitions:

Journal Entries

The recording of financial transactions in a company's double-entry accounting system.

Bond Interest

The periodic payment made to bond investors, representing the interest earned on the bond's face value.

Amortization

The process of gradually writing off the initial cost of an asset over its useful life or the repayment of a loan over time through scheduled payments.

Bond Discount

The gap between what a bond is worth (its face value) and the lower amount it is sold for in the market.