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To Solve the "Time Inconsistency" Problem in Macro Policy,a Nation

Question 52

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.

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