Time inconsistency means
A) taking different decisions at different times despite facing the same situation.
B) making policy choices that violate the intertemporal budget constraint.
C) deciding to do something tomorrow, and then doing something different tomorrow.
D) adding a random factor to decisions.
C
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A decrease in the price of gasoline shifts the demand for auto batteries to the
A. left, because gasoline and auto batteries are substitutes. B. left, because gasoline and auto batteries are normally used together. C. right, because gasoline and auto batteries are substitutes. D. right, because gasoline and auto batteries are normally used together.
A monopolistically competitive firm always faces a(n) ________
A) horizontal demand curve B) vertical demand curve C) upward sloping demand curve D) downward sloping demand curve
"Owners of firms in young industries should be willing to incur temporary losses if they believe that those firms will be profitable in the long run.". This observation helps to explain why many economists are skeptical about the
a. national-security argument. b. infant-industry argument. c. unfair-competition argument. d. jobs argument.
The GDP deflator measures how prices change over time.
Answer the following statement true (T) or false (F)