All of the following are sources of the impact lag except
A) it takes some time for the deposit multiplier process to work itself out.
B) firms need some time to respond to the monetary policy with respect to their investment plans.
C) it takes time for the Fed to formulate a policy that best addresses a problem in the economy.
D) a monetary change is likely to affect the exchange rate, but that translates into a change in net
exports only after some delay.
Ans: C) it takes time for the Fed to formulate a policy that best addresses a problem in the economy.
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In the above figure, a price ceiling of $4 would
A) result in a shortage in the long run. B) result in a surplus in the long run. C) have no effect. D) result in a surplus in the short run but have no effect in the long run.
Describe the rationale behind supply and demand analysis for public goods
Please provide the best answer for the statement.