Multiple Choice
The government of Montesia had announced that it would keep its money supply unchanged in 2010.However,in 2011,the money supply increased,thereby ruining public expectations.This led to:
A) no problem;this is normal behavior.
B) policy credibility.
C) a time-inconsistency problem.
D) the development of rational expectations.
E) an anticipation about the monetary policy.
Correct Answer:
Verified
Correct Answer:
Verified
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