The Principal Lag for Monetary Policy

question 36

Multiple Choice

The principal lag for monetary policy

• A)and fiscal policy is the time it takes to implement policy.
• B)and fiscal policy is the time it takes for policy to change spending.
• C)is the time it takes to implement policy.The principal lag for fiscal policy is the time it takes for policy to change spending.
• D)is the time it takes for policy to change spending.The principal lag for fiscal policy is the time it takes to implement it.

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Definitions:

Action

The process or state of acting or being active.

Outcome

The result or effect of an action or experiment.

Addition Rule

Combined probability of mutually exclusive outcomes is the sum of the individual probabilities.

Super Bowl

The annual championship game of the National Football League (NFL), representing the culmination of each NFL season.