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


Ans: a. the political business cycle and the time-inconsistency problem

Economics

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Economics