Question

Which of the following is an example of inside lag in monetary policy?

Individual banks ignore a reduction in the required reserve ratio and hold excess reserves.


Corporations respond slowly to increases in interest rates by reducing their planned investment for future years.


Members of the Board of Governors refuse to lower the discount rate until several months after a recession has begun.


The U.S. government debates a public works program and chooses not to spend money on new highways and railroads.

Answer 1

d

Step-by-step explanation:

Members of the Board of Governors refuse to lower the discount rate until several months after a recession has begun