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

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Definitions:

Incarceration

The state of being confined in prison; may also refer to the system of punishment within a legal framework.

Labor Force Participation

The percentage of the working-age population that is either employed or actively seeking employment.

Pace Of Life

The speed at which life's activities and events occur, varying greatly between different societies and within urban versus rural settings.

Secularism

The principle of separating the government institutions and the persons mandated to represent the state from religious institutions and religious dignitaries.