Outside lags for monetary policy occur because:
A. firms must change investment plans before monetary policy can be effective.
B. it takes time to identify a problem.
C. once a problem is diagnosed, it still takes time to implement policy changes.
D. once changes are finally diagnosed and implemented, policies are immediately effective.
Answer: A
You might also like to view...
Explain what is meant by investment by MNCs encouraging inappropriate consumption
What will be an ideal response?
In explaining the downward-sloping aggregate demand curve, the net export effect is:
a. When a nation's price index falls, international capital flows are attracted to it, which causes the net exports to rise. b. When the price index falls, net exports fall because a nation's exports become relatively cheaper and its imports become relatively more expensive. c. When the price index falls, the real money supply rises, causing the real risk-free interest rate to fall, and consumption and real investment to rise. d. When the price index falls, net exports rise because a nation's exports become relatively cheaper and its imports become relatively more expensive. e. When the price index falls, central banks intervene to bring prices back to where they were, causing net exports to rise.
If regulators force a natural monopoly to price as a perfectly competitive firm would, the natural monopolist
A) will experience a lower marginal cost. B) will earn an economic loss. C) will expand its output. D) will experience a rise in long-term average costs.
If the interest rate is 9 percent, to get back $800 in one year you would need to deposit ________ today.
A. $720.72. B. $714.29. C. $733.95. D. $791.00.