The Amount of Time It Takes for Fiscal Policy to Have

question 100

Multiple Choice

The amount of time it takes for fiscal policy to have an impact on the economy creates:

• A) an information lag.
• B) a formulation lag.
• C) an implementation lag.
• D) a direction lag.

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Definitions:

Collection Time

The average period that a company takes to collect cash from its credit sales.

Cheques

A document that is written, dated, and signed, which gives an absolute command to a bank to pay a specific amount of money to the recipient.

Bank Clearing Time

The process and time required for checks and other transactions to be processed through a bank or clearinghouse and the funds to become available.