Economists who study monetary policy believe that it takes anywhere from __________ for monetary policy to have a substantial effect on economic activity.
A)three to six weeks
B)6 to 18 days
C)6 to 18 months
D)three to six months
E)6 to 18 weeks

Question

Quizplus · Accepted Answer

Economists who study monetary policy believe that it takes between 6 to 18 months for monetary policy to have a substantial effect on economic activity. This is because monetary policy affects the economy through multiple channels, such as interest rates, lending behavior of banks, consumer and business spending, and investment decisions. It takes time for these channels to fully transmit the impact of the policy to the broader economy.

Economists Who Study Monetary Policy Believe That It Takes Anywhere