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.
C
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A supply curve typically slopes upward because:
a. opportunity cost of production increases as the quantity supplied increases. b. price and quantity supplied are inversely related. c. quantity supplied is positively related to consumer income. d. the substitution effect of a price change on quantity supplied is generally positive. e. the income effect of a price change on quantity supplied is generally negative.
Average revenue minus average total cost equals
a. total economic profit b. total accounting profit c. a normal profit d. economic profit per unit of output e. marginal cost
An example of an oligopoly is: a. the book industry
b. the music CD industry. c. the automobile industry. d. the market for soybeans.
If an employer pays employees according to the volume of business revenue they individually generate, then the employer is applying the
A) productivity standard. B) merit standard. C) contributive standard. D) all of the above.