Which of these is an example of inside lag in monetary policy? A. Congress debates funding new highways. B. Banks hold more reserves than they are required. C. The Fed lowers interest rates several months into a recession. D. Corporations expand years after the Fed lowers interest rates.

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Members of the Board of Governors disagree on the state of the economy and refuse to lower the discount rate until several months after a recession has begun is an example of inside lag in monetary policy.

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Asked 12/30/2015 7:50:58 AM

Updated 12/30/2015 8:19:39 AM

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