All of the following explain the impact lag except the time between
A) a change in the money supply and a change in interest rates.
B) a change in interest rates and a change in investment.
C) a change in investment and the change in GDP.
D) a change in the economy and the use of a tool of monetary policy.

Question

Quizplus · Accepted Answer

The impact lag does not refer to the time between a change in the economy and the use of a tool of monetary policy. The impact lag specifically refers to the time between one economic variable changing and the subsequent change in another economic variable.

All of the Following Explain the Impact Lag Except the Time