To Deal with the Time Inconsistency Problem Associated with Monetary

question 17

Multiple Choice

To deal with the time inconsistency problem associated with monetary policy,some have suggested that

• A)the head of the central bank be chosen by election.
• B)the central bank implement expansionary monetary policy prior to election years.
• C)elected officials should have a direct influence on the implementation of monetary policy.
• D)all of the above
• E) none of the above

---

Definitions:

Vice President

A high-ranking executive position in an organization, typically next in authority to the president or CEO.

Empowerment

The process of giving individuals or groups the power and authority to make decisions, take actions, and control their work in an autonomous way.

Performance

The act of carrying out a task or function; how well an individual, group, or system accomplishes its objectives or goals.

Managerial Power

The ability of managers to influence or control resources, decisions, and actions within an organization.