Multiple Choice
What is the principal reason that monetary policy has lags?
A) It takes a long time for changes in the interest rate to change aggregate demand.
B) It takes a long time for changes in the money supply to change interest rates.
C) It takes a long time for the Bank of Canada to make changes in policy.
D) It takes a long time for the government to pass the necessary laws.
Correct Answer:
Verified
Correct Answer:
Verified
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