The time between when the Fed adjusts the money supply and when the adjustment has an effect on the economy is the
A)recognition lag.
B)implementation lag.
C)impact lag.
D)open-market lag.

Question

Quizplus · Accepted Answer

The impact lag refers to the delay between when the Federal Reserve (Fed) changes the money supply and when those changes have a noticeable effect on the economy. This encompasses the time it takes for monetary policy adjustments to influence economic activities such as spending, investment, and employment.

The Time Between When the Fed Adjusts the Money Supply