Which of the following is true of lags associated with discretionary policy?
a. Such lags extend only from the time a problem occurs in the economy through the time it is recognized by the government.
b. Such lags extend only from the time a problem is recognized by the government through the time an agreed-on policy is approved of.
c. Such lags extend only from the time a policy is approved through the time the policy is implemented.
d. Such lags can be reduced by taxation.
e. Such lags extend only from the time a problem occurs in the economy through the time a corrective policy has an impact on the economy.
e
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The long-run Phillips curve suggests that changing the rate of unemployment in the economy has no impact on the inflation rate
a. True b. False Indicate whether the statement is true or false
The Federal reserves fed wire system is used mainly to provide:
A. a means for foreign banks to transfer funds to U.S. banks. B. an inexpensive and reliable way for financial institutions to transfer funds to one another. C. a means for the Treasury to collect tax payments. D. an inexpensive way for individuals to pay their bills on-line.
A budget deficit occurs when government receipts fall short of government spending
a. True b. False Indicate whether the statement is true or false
Which of the following is true?
a. Large corporations earn profits, while smaller firms realize losses. b. Profits attract businesses to productive projects, while losses discourage them from undertaking unproductive activities. c. Profits indicate that businesses are over-charging customers, while losses suggest that they should raise customer prices. d. If corporations want to increase profits, they will always be able to do so by either increasing product prices or reducing employee wages.