The Time Inconsistency Problem Means That Policy Makers Are Always

question 54

Multiple Choice

The time inconsistency problem means that policy makers are always tempted to pursue ________ policy in the short run.

• A) expansionary
• B) contractionary
• C) inconsistent
• D) non-discretionary

---

Definitions:

Learned Patterns

Behaviors, attitudes, or skills acquired through experience or education rather than being innate.

Consciousness

The state of being awake and aware of one's surroundings, thoughts, and experiences.

Incubation

A process or period of development and preparation, often used in reference to ideas, projects, or entrepreneurial ventures.

Reflective Thought

A careful consideration and analysis of one's own thoughts and feelings, often as a part of the decision-making process or for self-improvement.