Multiple Choice
Which of the following would eliminate the time inconsistency problem?
A) Each of the following would eliminate the time inconsistency problem.
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) None of the above.
Correct Answer:

Verified
Correct Answer:
Verified
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