The Fed's monetary policies,like fiscal policy,are subject to _____ lags.

Question

Quizplus · Accepted Answer

The Fed's monetary policies, just like fiscal policy, are subject to information lags, implementation lags, and decision lags. Information lags refer to the delay in receiving accurate information about the state of the economy. Implementation lags refer to the time it takes for a policy change to have its intended effect. Decision lags refer to the time it takes policymakers to agree on and implement a policy decision. All of these lags can affect the effectiveness of the Fed's monetary policies.

The Fed's Monetary Policies,like Fiscal Policy,are Subject to _____ Lags