Monetary Policy Is Considered Time-Inconsistent Because

question 21

Multiple Choice

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.

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Definitions:

Ephebophobic

Having an irrational fear of youths or a dislike of young people.

Ageism

Discrimination or prejudice against individuals based on their age, particularly among the elderly.

Generations

Describes the different groups of people born and living at about the same time, typically segmented into categories like Baby Boomers, Generation X, Millennials, and Generation Z.

Skip-Generation

A household where a child or children live with their grandparents without a parent present.