To Solve the "Time Inconsistency" Problem in Macro Policy, a Nation

question 39

Multiple Choice

To solve the "time inconsistency" problem in macro policy, a nation may well have to:

• A) present policy moves to the public, for example, in a referendum.
• B) use the courts to settle policy disputes.
• C) restrict itself in the present from taking certain policy moves in the future.
• D) lift all restrictions on future policy moves.
• E) make the central bank more responsive to the popular will.

---

Definitions:

Timber Ceilings

Architectural elements that use exposed wooden beams or panels as the visible surface of a ceiling, often adding aesthetic and structural character to a space.

Roman Architecture

An architectural style developed by the Romans, known for advancements such as the arch, the dome, and the use of concrete, influencing Western architecture.

Relics

The body parts, clothing, or objects associated with a holy figure, such as the Buddha or Christ or a Christian saint. Also, in Africa, the bones of ancestors.

Pilgrims

Travelers who journey to a sacred place for religious reasons, often undertaken as a quest or for a votive purpose.