The Problem of Lags Suggests That Monetary Policy Should

Multiple Choice

The problem of lags suggests that monetary policy should

A) respond swiftly to statistical reports of economic conditions in the recent past.
B) respond to conditions expected to exist in the future.
C) stagger its implementation of policies so that there will be an ongoing effect on the economy.
D) not respond to changing economic conditions in the economy but instead rely on the economy's self correcting mechanism.