What is the reason that stabilization policies do not have an immediate effect on an economy?
A) Consumers are slow to catch up on spending.
B) There is a time lag for policies to take effect.
C) Imports come into the country too fast.
D) Exports often are not shipped fast enough.

Question

Quizplus · Accepted Answer

There is typically a time lag between when stabilization policies are enacted and when their full effects are felt on the economy. This delay can be caused by factors such as administrative delays in implementing the policies, the time it takes for consumers and businesses to adjust their behavior in response to the policies, and delays in the transmission of monetary policy through financial markets.

What Is the Reason That Stabilization Policies Do Not Have