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28 September, 18:10

The time it takes for monetary or fiscal policy to become effective is the:

A. outside lag

B. inside lag

C. policy lag

D. none of the above

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Answers (1)
  1. 28 September, 18:11
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    The time it takes for monetary or fiscal policy to become effective is the outside lag. The correct option among all the options that are given in the question is the first option or option "A". For a policy to show its magic, it requires a certain amount of time. This time is the outside lag and it is not possible to avoid this lag.
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