The longest and least predictable lag affecting the effectiveness of monetary policy is the

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The impact lag refers to the time it takes for changes in monetary policy to affect the economy. This lag can be unpredictable and can vary depending on a number of factors, such as the structure of the economy and the behavior of consumers and businesses. The recognition lag refers to the time it takes policymakers to recognize that a problem exists and the decision lag refers to the time it takes for policymakers to implement a chosen policy. While both of these lags can also have an impact on the effectiveness of monetary policy, the impact lag is generally considered to be the longest and the most difficult to predict.

The Longest and Least Predictable Lag Affecting the Effectiveness of Monetary