Results obtained from the Taylor model suggest that it takes roughly how long for the effects of money to become neutral?
A)one month
B)three months
C)one year
D)four years
E)ten years

Question

Quizplus · Accepted Answer

The Taylor model, which is often used in macroeconomic analysis, suggests that it takes approximately four years for the effects of monetary policy to become neutral, meaning that the economy adjusts to changes in the money supply and returns to its natural state.

Results Obtained from the Taylor Model Suggest That It Takes