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To Deal with the Time Inconsistency Problem Associated with Monetary

Question 17

Multiple Choice

To deal with the time inconsistency problem associated with monetary policy,some have suggested that


A) the head of the central bank be chosen by election.
B) the central bank implement expansionary monetary policy prior to election years.
C) elected officials should have a direct influence on the implementation of monetary policy.
D) all of the above
E) none of the above

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