Multiple Choice
Time inconsistency arises when the government
A) does not explicitly state its long-term goals.
B) does not know how to achieve its long-term goals.
C) is willing to deviate from its long-term goals for the sake of short-run gain.
D) often changes its long-term goals.
E) adheres to its long-term goals.
Correct Answer:
Verified
Correct Answer:
Verified
Q46: When the actual and target rate of
Q47: In an attempt to avert the worst
Q48: Suppose real and potential GDP are initially
Q49: The most important feature of a central
Q50: Currency-the amount of coins and bills in
Q52: Which of the following would cause the
Q53: Describe the relationship between demand shocks and
Q54: The original Phillips curve argued that there
Q55: When the Fed increases the interest rate,<br>A)money
Q56: The Fed changes the federal funds rate