The time consistency problem implies that
A) the central bank should not commit.
B) central bank commitment is useful.
C) discretion is better than tying your hands.
D) there are problems we cannot solve.
B
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The key official definition of the money supply is
A) only coins and paper currency in circulation. B) M2. C) only transactions deposits at banks. D) MZM.
Max is shopping for a new winter jacket. The salesperson explains that two coats have identical features-the Columbia jacket that costs $120, and the Burton jacket that costs $300. Max buys the Burton jacket. Burton jackets may be a good example of:
A. a normal good. B. an inferior good. C. a Veblen good. D. a Giffen good.
When the economy is going strong the:
A. demand for workers increases. B. supply of workers increases. C. demand for workers decreases. D. supply of workers decreases.
The largest item in the government's poverty program is
a. cash aid b. medical benefits c. food stamps d. housing benefits e. jobs and training programs