Which of the following best describe/s an inside lag in policymaking? (1) The central bank raises the interest rate as inflation rises above the target, but firm already made investment plans for the next four months. (ii) The coverage of the beneficiaries of conditional cash transfers is proposed to be en provide income to people who lost their jobs because of the recession. However, the C cannot immediately reach an agreement on how large the transfers are going to be. (iii) In January, the government announced that it will cut the corporate income tax rate Seeing that the firms have already increased their investment purchases even before J government reneged on its promise and did not cut taxes in June. O a. O b. O c. d. (i), (ii), and (iii) Only (ii) Only (iii) Only (1)
Which of the following best describe/s an inside lag in policymaking? (1) The central bank raises the interest rate as inflation rises above the target, but firm already made investment plans for the next four months. (ii) The coverage of the beneficiaries of conditional cash transfers is proposed to be en provide income to people who lost their jobs because of the recession. However, the C cannot immediately reach an agreement on how large the transfers are going to be. (iii) In January, the government announced that it will cut the corporate income tax rate Seeing that the firms have already increased their investment purchases even before J government reneged on its promise and did not cut taxes in June. O a. O b. O c. d. (i), (ii), and (iii) Only (ii) Only (iii) Only (1)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education