The impact lag is the time between
A) a change in the money supply and a change in interest rates.
B) a change in the money supply and a change in GDP.
C) the use of a Federal Reserve tool and its effect on GDP.
D) the use of a Federal Reserve tool and its effect on the money supply.

Question

Quizplus · Accepted Answer

The impact lag refers to the delay between the implementation of a monetary policy action by the Federal Reserve (or any central bank) and the observable effect of that action on the broader economy, such as changes in GDP.

The Impact Lag Is the Time Between