Which of the following helps to explain why time lags cause, Ask an Expert

Economics

Which of the following helps to explain why time lags cause monetary policy to be difficult to conduct?

A. It takes time to recognize that there is a problem. For example, changes in consumer or business confidence can be difficult to recognize as they are occurring.

B. The changes in interest rates that policymakers cause do not have an immediate effect on the economy.

C. It takes time for the federal reserve to implement changes to the interest rate or the monetary base.

D. Both (A) and (B) are good answers.

E. All of the above are good answers.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91678226

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