Why Do Long Lags Make Discretionary Policy Less Effective

question 90

Multiple Choice

Why do long lags make discretionary policy less effective?  

• A) because by the time the impact of a discretionary policy is felt, the problem it was meant to cure may have been corrected 
• B) because lags are longer in contractions than in expansion. 
• C) because lags are longer in expansions than in contractions 
• D) because automatic stabilizers are subject to longer lags than are discretionary policies

---

Definitions:

Sensory Axons

Nerve fibers that transmit sensory information from the sensory receptors to the spinal cord and brain.

Central Nervous System

The part of the nervous system comprising the brain and spinal cord, responsible for processing and transmitting information.

Meninges

Protective membranes that cover the brain and spinal cord, comprising the dura mater, arachnoid mater, and pia mater.

Spinal Cord

In vertebrates, the nerve cord that is continuous with the base of the brain and housed within the vertebral column.