The lags involved in implementing monetary and fiscal policy are:
A) short and predictable.
B) long and predictable.
C) short and variable.
D) long and variable.

Question

Quizplus · Accepted Answer

The lags involved in implementing monetary and fiscal policy can vary in length and are often unpredictable. It may take a considerable amount of time for the effects of a policy change to be felt in the economy, and unexpected events can disrupt the intended outcomes. Therefore, the best choice is D - long and variable.

The Lags Involved in Implementing Monetary and Fiscal Policy Are