Economics Multiple Choice Question – 4 January 2022

Monetary policy does not usually work immediately.

Which time lag is likely to be the LEAST concern to a government whose priority is a rapid domestic impact?

Select ONE answer:

1. the time it takes for policymakers to recognise the cause of a problem
2. the time it takes for the economy to respond to the introduction of the policy
3. the time it takes for the foreign exchange rate to respond to the effect of the policy
4. the time it takes to put the chosen policy measure into place

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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