A time-inconsistent monetary policy is one that:
a. is set by congressional decree.
b. is based on monetary targets established by law.
c. changes over time as economic conditions change.
d. follows a zero percent inflation rate.
e. does not adapt to changing economic conditions.
c
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In the short run, which of the following actions raises the interest rate?
A) a decrease in the demand for money B) an increase in bond prices C) an increase in the quantity of money D) an increase in the demand for money
The Fed has the power to increase or decrease the number of dollars in the economy through the decisions of
a. the Board of Governors. b. the FOMC. c. the regional Federal Reserve Bank presidents. d. the U.S. Treasury.
The form of economic organization in which individuals may own private property but in which the government owns and operates productive resources is called
A) communism. B) capitalism. C) socialism. D) utilitarianism.
Are the terms "shutdown" and "exit" synonymous? What is the optimal shutdown rule for a firm?
What will be an ideal response?