The Principal Reason That Monetary Policy Has Lags Is That

question 28

Multiple Choice

The principal reason that monetary policy has lags is that it takes a long time for

• A)changes in the interest rate to change aggregate demand.
• B)changes in the money supply to change interest rates.
• C)the Fed to make changes in policy.
• D)Congress and the President to approve Fed policy.

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Definitions:

Environmental Component

Involves the elements of the physical and social setting that can affect individuals' behavior and well-being at work, such as noise level and office layout.

Coping Orientation

An individual's habitual methods or strategies to manage stress, challenges, or adversity.

Vested Interest

A personal stake or involvement in an undertaking or situation, where the individual stands to gain from its successful outcome.

Environmental Uncertainty

A lack of predictability or stability in the external conditions that can affect an organization's performance.