The "Effectiveness Lag" in Monetary Policy Is the Amount of Time

question 51

Multiple Choice

The "effectiveness lag" in monetary policy is the amount of time it takes

• A)to collect the data to determine if a policy change is required.
• B)for monetary policy to have an impact on inflation and unemployment.
• C)for monetary policy to affect the money supply.
• D)to collect the data to determine what effect monetary policy has had on the economy.

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Definitions:

Cognitive Development

refers to the processes by which thinking evolves, including acquiring, processing, and storing knowledge and information.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, typically developed in infancy.

Conservation

The principle that certain properties, like volume, mass, and number, remain the same despite changes in the forms of objects, in cognitive development.

Centration

In Piaget’s theory, the tendency of a young child to focus only on one feature of an object while ignoring other relevant features.