A Time-Consistent Policy Is One Where

Multiple Choice

A time-consistent policy is one where

A) the parties to a contract are free to renegotiate the contract at a later date
B) the agent has no incentive to take an action to the detriment of the principal once the contract is agreed upon
C) the principal can contract directly on the effort level chosen by the agent
D) the parties to a contract has no incentive to renegotiate it at a later date
E) both b and c