The effects of any change in monetary policy lag
A) in part because they work through changes in the interest rate to alter investment and it takes a long time for investment projects to come to fruition.
B) in part because they work through changes in the interest rate to alter net exports and it takes a long time for international markets to register the permanence of such a change.
C) by such a long time that the maximum effect is generally felt one to two years after the policy adjustment.
D) by such a long time that policy makers are reluctant to make large adjustments for fear of exacerbating a future problem in the event that conditions turn around.
E) all of the above.
Correct Answer:
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