Solved

When Policy Makers Have an Incentive to Announce One Policy

Question 140

Multiple Choice

When policy makers have an incentive to announce one policy to shape expectations but then pursue a different policy once those expectations have been formed and acted on,there is


A) no problem; this is normal behavior
B) policy credibility
C) a time-inconsistency problem
D) rational expectation
E) None of the answers is correct

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q24: Advocates of the active approach believe that

Q49: An increase in price expectations shifts the

Q92: One of the reasons fiscal and monetary

Q135: If an economy adjusts to potential GDP

Q137: Exhibit 16-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 16-5

Q138: After the 1960s,the short-run Phillips curve based

Q139: According to the rational expectations school,which of

Q142: The short-run Phillips curve shows that<br>A)the economy

Q144: According to the natural rate hypothesis,the natural

Q145: Along the short-run Phillips curve,when the unemployment