The Time Inconsistency of Policy Implies That

question 32

Multiple Choice

The time inconsistency of policy implies that

• A)what policymakers say they will do is generally what they will do, but people don't believe them because of current policy.
• B)when people expect that inflation will be low, it is harder for the Fed to increase output by increasing the money supply.
• C)people expect Fed policy to be more inflationary than the Fed claims.
• D)what policymakers say they will do is usually not what they do, but people believe them anyway.

Understand the distinction between parametric and nonparametric statistical tests.

Learn the basic steps and requirements for performing a Wilcoxon rank sum test.

Know the conditions under which nonparametric tests are preferred over parametric tests.

Comprehend how the Wilcoxon rank sum test operates with ordinal or interval but non-normally distributed data.

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Definitions:

Impulsive Behavior

Actions performed without forethought or consideration of the consequences, often driven by immediate desires or emotions.

Depressant Effects

The slowing down of brain and body functions caused by certain substances or drugs.

Nerve Impulses

Electrical signals that travel along neurons, conveying information throughout the nervous system.

Depressants

Substances that reduce the activity of the central nervous system, often used to induce calmness or sleep.