Which of the Following Pairs of Lags Are Typically Shorter

question 55

Multiple Choice

Which of the following pairs of lags are typically shorter for monetary policy than for fiscal policy?

• A)the recognition lag and the implementation lag
• B)the effectiveness lag and the decision-making lag
• C)the decision-making lag and the implementation lag
• D)the implementation lag and the effectiveness lag
• E)the recognition lag and the effectiveness lag

---

Definitions:

Marginal Benefit

The additional satisfaction or value one receives from consuming or producing one more unit of a good or service.

Vote Trading

A practice where members of a legislative body agree to vote for each other's proposed legislation or amendments.

Public Project

A public project involves initiatives or works undertaken by the government meant to benefit the public by providing essential services, infrastructure, or amenities.

Marginal Benefit

The gain in pleasure or value received from the consumption of one more unit of a good or service.