Economic policy may be inappropriate when it takes effect for all of the following reasons except
A) recognition lags.
B) implementation lags.
C) response lags.
D) anticipation lags.

Question

Quizplus · Accepted Answer

Anticipation lags are not typically considered a reason for economic policy to be inappropriate when it takes effect. Recognition, implementation, and response lags are all delays that can make a policy less effective or inappropriate by the time it is implemented or starts to have an effect, but anticipation lags refer to the market or individuals reacting to expected policy changes before they happen, which doesn't inherently make a policy inappropriate.

Economic Policy May Be Inappropriate When It Takes Effect for All