Menu
support@graduatecourseshelp.com
+1(805) 568 7317

the time inconsistency problem with monetary policy tells us that if policymakers us 639594

The Price Stability Goal and The Nominal Anchor

1) Monetary policy is considered time inconsistent because

A) of the lag times associated with the implementation of monetary policy and its effect on the economy.

B) policymakers are tempted to pursue discretionary policy that is more contractionary in the short run.

C) policymakers are tempted to pursue discretionary policy that is more expansionary in the short run.

D) of the lag times associated with the recognition of a potential economic problem and the implementation of monetary policy.

2) The time inconsistency problem with monetary policy tells us that, if policymakers use discretionary policy, there is a higher probability that the ________ will be higher, compared to policy makers following a behavior rule.

A) inflation rate

B) unemployment rate

C) interest rate

D) foreign exchange rate

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now