Time lags can limit the effectiveness of, and complicate, stabilization policy. When conducting monetary policy, which of the following lag types must policy makers consider most carefully? A. Recognition lags B. Political lags C. Response lags D. Implementation lags

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Social Studies

Adrian Fitzgerald

4 August, 19:55

Time lags can limit the effectiveness of, and complicate, stabilization policy. When conducting monetary policy, which of the following lag types must policy makers consider most carefully? A. Recognition lags B. Political lags C. Response lags D. Implementation lags

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Implementation lags

Explanation:

Although there are many different types of lags that could limit the effectiveness of, and complicate, stabilization policy, the type of lag that policy makers must consider most carefully is implementation lags. Implementation lags refers to the time that it takes to put a particular policy into place. This includes carrying out tasks such as setting up the administration of the money, delivering it to the right people and making plans on how to spend it.