Answer: Monetary policy has a long outside lag.
Explanation:
The options are that:
a. It wants to avoid time inconsistency problems.
b. It takes time for the Central Bank to implement its policy decisions.
c. Monetary policy has a long outside lag.
d. Forecast errors are often rather large.
Monetary policy is the use of interest rate and the supply of money to control the economy. Optimal monetary policy helps to maximizes the welfare of individuals and firms given the frictions that occur in the economic environment.
Under optimal monetary policy, the central bank adjusts its policy based on anticipated rather than current inflation and output gaps because monetary policy has such long outside lags. It has a long outside lag because they mainly affect the investment plans of business and a change in the rate of interest might not really have a full effect on the spending on investment for several years.
When an individual qualifies for a lower premium or rate than standard risks, the insured is considered a Preferred risk
What is an Insurance?
Insurance protection against loss is offered by insurance. It is a form of risk management that is mostly used to reduce the risk of a potential loss that is unknown or contingent. A business that provides insurance is known as an insurer, insurance firm, insurance carrier, or underwriter.
To learn more about Insurance
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Answer:
factor affecting hr fire forecasting
Employment.
Technological changes.
Organizational changes.
Demographic changes.
Culture.
Shortage of skill due to labor turnover.
Pressure groups.
Economic factors.
Explanation:
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A weighted average of the risk of each individual investments in the portfolio. The weighted average of risk is found using the standard deviation.
