The time period that it takes for companies to form new business connections and place new orders in response to currency depreciation is known as the
A) recognition lag.
B) replacement lag.
C) decision lag.
D) production lag.

Question

Quizplus · Accepted Answer

The time period described in the question is known as the "decision lag." This refers to the time it takes for companies to make decisions about new business connections and orders, after recognizing the impact of currency depreciation. The other options, "recognition lag," "replacement lag," and "production lag," refer to different stages of the business cycle and are not directly related to this specific time period.

The Time Period That It Takes for Companies to Form