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.

for starters, there is the structural trend of rising primary government expenditure as a share of gdp, which reached 36% in 2014, up from 22% in 1991. this increase reflected a political desire to address the poverty and inequality that had gone unaddressed during previous decades. to support the increase, brazil’s government increased taxes on consumption and promoted progress toward labor-market formalization. nonetheless, public investment, particularly in infrastructure, took a hit. in fact, with the exception of the 2005-2008 period, total investment as a share of gdp has remained below 20% since 1991.