Which of the following is most consistent with the time-inconsistency problem?
A) while it is ten o'clock in the morning in Chicago, it will be eleven o'clock in New York City
B) a monetary policy action that is implemented in January will not begin to influence economic variables for several months
C) a parent who acquiesces to a child's demand just to keep them quiet in a public setting
D) an economic model with adaptive expectations
C
You might also like to view...
One way to limit the problem of adverse selection in health insurance is to _____
a. investigate fraudulent activity b. promote competition in health insurance markets c. charge premiums in proportion to the probability of making claims d. a and c
Long-run equilibrium for a perfectly competitive firm occurs when
a. P = MC = MR = ATC b. MC = MR = AFC = ATC c. MC = MR = P > ATC d. P > MC > MR > ATC e. TR > TC
If market demand decreases and market supply increases, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____
a. indeterminate; decrease b. indeterminate; increase c. decrease; indeterminate d. increase; indeterminate
The primary purpose of antitrust legislation is to
a. protect small businesses. b. protect the competitiveness of U.S. markets. c. protect the prices of American-made products. d. ensure firms earn only a fair profit.