The ________ Lag Is the Time It Takes for Policymakers

question 43

Multiple Choice

The ________ lag is the time it takes for policymakers to obtain the data that tell them what is happening to the economy,while the ________ lag is the time it takes for policymakers to be sure of what the data are signaling about the future course of the economy.

• A)data; recognition
• B)recognition; data
• C)data; implementation
• D)implementation; recognition

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Definitions:

Equivalent Annual Annuity

A financial term referring to the annual cash flow from an investment over its lifespan, adjusted to reflect equal annual payments.

Cost of Capital

The target earnings rate that a company seeks on investments to preserve its value in the market and gather funds.

Mutually Exclusive

Decisions or projects that, if chosen, prevent the selection of one or more other options.

Present Value

The present value of a future amount of money or series of cash flows, adjusted for a certain return rate.