If People Remember the Message Better Than the Reason for Discounting

question 24

Multiple Choice

If people remember the message better than the reason for discounting it,the impact of a noncredible person may _______ over time.

• A)change
• B)stay the same
• C)increase
• D)decrease

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Definitions:

Monetary Policy

The management of a nation's money supply and interest rates by its central bank to control inflation and stabilize currency.

Recognition Lag

The delay between the onset of an economic problem and the time at which it is recognized by policymakers.

Decision Lag

The delay between recognizing the need for a decision and the actual implementation of that decision, often affecting the efficiency of response in economic policy.

Impact Lag

The time it takes for the full effects of a monetary or fiscal policy to impact the economy after it has been implemented.