Multiple Choice
_____,the time-inconsistency problem gets eliminated.
A) When an inflation or a recession is correctly anticipated
B) When lags associated with monetary and fiscal policy are extremely short
C) When discretionary macro policy is replaced with fixed policy rules which are well publicized
D) When expectations about the economy adjust very slowly
E) When the price level in an economy adjusts over time with changes in aggregate demand
Correct Answer:

Verified
Correct Answer:
Verified
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