The Time It Takes to See If That There Has

question 159

Multiple Choice

The time it takes to see if that there has been a shock to the economy is

• A) a recognition lag.
• B) an implementation lag.
• C) a response lag.
• D) none of the above

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Definitions:

Compounded Quarterly

A method of calculating interest where the interest earned is added to the principal amount at the end of each quarter, leading to interest on interest in subsequent periods.

Bank Account

A financial account maintained by a banking institution where a customer can deposit and withdraw money.

Deposit

Money placed into a financial institution or account for safekeeping or to earn interest.

Compounded Quarterly

A method of calculating interest where the interest earned is added to the principal at the end of every three-month period, subsequently increasing the amount on which future interest is computed.