_____,The Time-Inconsistency Problem Gets Eliminated

question 129

Multiple Choice

_____,the time-inconsistency problem gets eliminated.

• A)When an inflation or a recession is correctly anticipated
• B)When lags associated with monetary and fiscal policy are extremely short
• C)When discretionary macro policy is replaced with fixed policy rules which are well publicized
• D)When expectations about the economy adjust very slowly
• E)When the price level in an economy adjusts over time with changes in aggregate demand

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Definitions:

Static Condition

A situation or state that does not change over time.

Individuals

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Expert Power

The influence wielded by an individual or an entity because of their expertise, skills, or knowledge.

Alternate Sources

Different or supplementary origins from which something can be obtained or learned.