Multiple Choice
The ________ problem of discretionary policy arises because economic behavior is influenced by what firms and people expect the monetary authorities to do in the future.
A) moral hazard
B) time-inconsistency
C) nominal-anchor
D) rational-expectation
Correct Answer:
Verified
Correct Answer:
Verified
Q21: Monetary policy is considered time-inconsistent because<br>A)of the
Q22: The Fed's mistakes of the early 1930s
Q23: High unemployment is undesirable because it<br>A)results in
Q24: If the relationship between the monetary aggregate
Q25: Foreign exchange rate stability is important because
Q27: Which of the following is NOT an
Q28: The "Greenspan doctrine"-central banks should not try
Q29: The most common definition that monetary policymakers
Q30: The time-inconsistency problem in monetary policy can
Q31: Either a dual or hierarchial mandate is