Question:

In general, the longest lag for?

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a. both fiscal and monetary policy is the time it takes to change policy.

b. both fiscal and monetary policy is the time it takes for policy to affect aggregate demand.

c. monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand.

d. fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand.

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  1. I think "C" is right one - though not for sure.

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