Sources of lags in monetary policy

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Reference no: EM13743131

Which of the following are sources of lags in monetary policy?

I. Congress must vote on and approve the Fed's policies before they take effect

II. Changes in the Fed funds rate take time to influence other interest rates, like mortgage rates or business loan rates

III. At times, ambiguous economic data make it difficult to determine the current status of the economy

IV. Once the Fed's policies impact longer-term interest rates, it takes time for businesses and consumers to change their behavior in response to the interest rate changes

A. II and III

B. I, II, III, and IV

C. II, III, IV only

D. III and IV

E. I, III, IV only

Reference no: EM13743131

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