Which of the Following Is One Reason for the Existence

question 68

Multiple Choice

Which of the following is one reason for the existence of policy lags?

• A)Government experts are slow in figuring out what is going on.
• B)Households and firms plan their spending in advance and therefore are slow in responding to changes in interest rates.
• C)It is impossible to build an accurate model of the economy.
• D)It is difficult for the Bank of Canada to change the bank rate.

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Definitions:

Perceptual Set

A psychological framework or expectation that significantly influences one’s perception of sensory information.

Psychokinesis

The supposed ability to move objects by mental effort alone.

Retinal Disparity

The difference in visual images that each eye perceives because of the eyes’ different positions, contributing to depth perception.

Linear Perspective

A technique in art and drawing that creates the illusion of depth on a flat surface by converging parallel lines towards a single point on the horizon.