The Time Inconsistency of Policy Implies That

question 68

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 will believe Fed policy will be more inflationary than the Fed claims.
• D)None of the above is correct.

---

Definitions:

Industrial Workers of the World

An international labor union founded in 1905, known for its radical approach to worker's rights and socialism.

Primary Goals

The main or fundamental objectives that an individual, group, or organization aims to achieve.

President Roosevelt

Refers usually to Franklin D. Roosevelt, the 32nd President of the United States, known for his New Deal policies aimed at recovering from the Great Depression.

Labor Disputes

Conflicts between employees (often represented by unions) and their employers regarding working conditions, wages, and other employment issues.