The Amount of Time That It Takes Between Recognizing an Economic

question 120

Multiple Choice

The amount of time that it takes between recognizing an economic problem and implementing policy to solve it is

• A) fiscal policy.
• B) the recognition time lag.
• C) the effect time lag.
• D) the action time lag.

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Definitions:

Legal Tender

The coins or banknotes that must be accepted if offered in payment of a debt.

Debit Cards

Plastic cards issued by banks that allow cardholders to transfer money electronically from their bank account when making a purchase.

Grace Period

A set period of time after the due date during which payment can be made without penalty.

M2

A money aggregate consisting of M1 plus savings deposits, small-denomination time deposits, money market mutual funds, and other miscellaneous near-monies.