This topic contains a solution. Click here to go to the answer

Author Question: Assume that the Fed knows a demand shock has occurred in the economy. It takes the Fed 2 months to ... (Read 55 times)

mmm

  • Hero Member
  • *****
  • Posts: 558
Assume that the Fed knows a demand shock has occurred in the economy. It takes the Fed 2 months to adjust policy to the shock, and it takes the economy 14 months for the policy change to affect the economy.
 
  The 2 month time period refers to the ________, and the following 14 month time period refers to the ________. A) policy lag; implementation lag
  B) recognition lag; implementation lag
  C) implementation lag; impact lag
  D) policy lag; recognition lag

Question 2

Finance companies ________.
 
  A) acquire access to funds by accepting deposits then using these monies to lend to households and firms
  B) raise funds by selling commercial paper then lend these funds to consumers
  C) acquire access to monies through the payment of premiums by employees
  D) are a special type of mutual fund



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

paavo

  • Sr. Member
  • ****
  • Posts: 301
Answer to Question 1

C

Answer to Question 2

B




mmm

  • Member
  • Posts: 558
Reply 2 on: Jun 30, 2018
:D TYSM


nathang24

  • Member
  • Posts: 314
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

For a complete list of videos, visit our video library