The principal reason that monetary policy has lags is that it takes a long time for
A) changes in the interest rate to change aggregate demand.
B) changes in the money supply to change interest rates.
C) the Fed to make changes in policy.
D) None of the above is correct.
Correct Answer:
Verified
Q10: The political business cycle refers to
A)the fact
Q11: If there is a political business cycle
Q22: Monetary policymakers are allowed
A)almost no discretion and
Q23: Which of the following is correct?
A)economic forecasts
Q24: Opponents of using policy to stabilize the
Q29: Suppose that the central bank must follow
Q31: The time inconsistency of policy implies that
A)what
Q42: Which of the following is an argument
Q129: Time inconsistency will cause the
A)short-run Phillips curve
Q136: Edward Prescott and Finn Kydland won the
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