Monetary policy, like fiscal policy, is subject to _____ lags.
A) information
B) implementation
C) decision
D) information, implementation, and decision

Question

Quizplus · Accepted Answer

Monetary policy, like fiscal policy, is subject to all three types of lags - information lags, implementation lags, and decision lags. Information lags refer to the time it takes for policymakers to collect and analyze economic data before making a decision. Implementation lags refer to the time it takes for the policy to be put into effect, and decision lags refer to the time it takes for policymakers to actually make a decision on what action to take.

Monetary Policy, Like Fiscal Policy, Is Subject to _____ Lags