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The Coordination Problem Is Difficult to Solve Because

Question 101

Multiple Choice

The coordination problem is difficult to solve because:


A) policymakers cannot make unified decisions.
B) aggregate price-setting behavior has built-in inflation inertia.
C) individual price-setting behavior economywide has built-in inflation inertia.
D) central banks are controlled by many different interests.
E) All of these answers are correct.

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