Which of the following support the idea that monetary policy should be made by a rule?
a. the political business cycle and the time-inconsistency problem
b. the political business cycle but not the time-inconsistency problem
c. the time-inconsistency problem, but not the political business cycle
d. neither the political business cycle nor the time-inconsistency problem
a
You might also like to view...
Ricardian equivalence is the proposition that
A) government expenditure should only be financed by taxes. B) it does not matter whether government expenditure is financed by creating new money or issuing debt. C) government expenditure should only be financed by issuing new debt. D) it does not matter whether government expenditure is financed by taxes or debt.
Assume there is a toll bridge that is built by a private firm. It's been determined by cost accountants that the marginal cost that each automobile imposes is close to zero
If the bridge cost $1 million to build and 250,000 automobiles cross it each day what is the price that would be necessary for the firm to charge in order to achieve the key efficiency criteria of perfect competition? How might this be a problem for this private bridge company?
Which nation is one of the few African island nations to encourage international trade in government-supported special economic zones (SEZ)?
a. Madagascar b. Mali c. Mauritania d. Mauritius
If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem
a. True b. False Indicate whether the statement is true or false