Multiple Choice
A time-inconsistency problem in macroeconomic policy can occur when the policymaker:
A) is made to follow a strict and an inflexible rule.
B) has discretion in the short run but follows a rule in the long run.
C) changes stated policy because it benefits their current circumstance at the expense of public trust.
D) has no discretion.
Correct Answer:
Verified
Correct Answer:
Verified
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