Multiple Choice
To solve the "time inconsistency" problem in macro policy,a nation may well have to
A) restrict itself in the present from taking certain policy moves in the future.
B) lift all restrictions on future policy moves.
C) present policy moves to the public, for example, in a referendum.
D) use the courts to settle policy disputes.
E) make the central bank more responsive to the popular will.
Correct Answer:

Verified
Correct Answer:
Verified
Q47: Analysis of U.S.growth rates shows that growth
Q48: Assume a country has presidential elections every
Q49: For this question,assume that the there exists
Q50: What are the new rules of the
Q51: In macroeconomics,game theory focuses on the strategic
Q53: Research by Alberto Alesina has documented differences
Q54: The Masstricht treaty set the budget ratio
Q55: Analysis of macro policy and theory has
Q56: Game theory analysis of macro policy suggests
Q57: The PAYGO rule was allowed to expire