Question

The time it takes for monetary or fiscal policy to become effective is the:
A. outside lag
B. inside lag
C. policy lag
D. none of the above

Answer 1

@micahm

Answer 2

Policy lags can reduce the effectiveness of business-cycle stabilization ... Inside lag is the time it takes between the actual onset of a problem and the ... The implementation of fiscal and monetary policy is also likely to take weeks if not months.

Answer 3

So Would it be C?? @micahm

Answer 4

yes

Answer 5

Thank you!