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The Temptation to Engage in Dynamic Inconsistency Can Be Minimized

Question 23

Multiple Choice

The temptation to engage in dynamic inconsistency can be minimized by


A) being more concerned with short-run outcomes than long-run outcomes
B) the desire to achieve credibility
C) employing policy responses that are right for current disturbances without much concern over long-run objectives
D) never announcing any proposed policy actions
E) none of the above

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