Time Lags in the Conduct of Monetary Policy Can Cause

question 44

Multiple Choice

Time lags in the conduct of monetary policy can cause

• A)monetary policy to work in the opposite direction to what was initially predicted by economists.
• B)an expansionary policy to have a smaller effect than what was expected by policymakers.
• C)monetary expansions to work very quickly but cause monetary contractions to work very slowly.
• D)difficulty in the timing of appropriate policy and can even lead to destabilization.
• E)short-term monetary policy to work more effectively than long-term targeting.

---

Definitions:

Conus Medullaris

The tapered end of the spinal cord, located around the first lumbar vertebra, where spinal nerves converge.

Ulnar Nerve

A nerve running along the ulna bone of the arm into the hand, responsible for sensations in the forearm and parts of the hand.

Intrinsic Hand Muscles

The muscles located within the hand responsible for fine motor movements, including finger flexion and extension.

Flexor Muscles

Muscles that decrease the angle between two bones at a joint, typically described in the limbs.