Which of these is NOT a lag inherent in monetary policy?
A) interest rate
B) information
C) recognition
D) decision

Question

Quizplus · Accepted Answer

Interest rate lag is not a type of lag inherent in monetary policy. The inherent lags are information lag, recognition lag, and decision lag, which are related to the time it takes to identify economic trends, recognize the need for intervention, and make policy decisions, respectively. Interest rates are a tool of monetary policy, not a lag.

Which of These Is NOT a Lag Inherent in Monetary