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:

Product Life Cycle

The stages through which a product moves from its introduction into the market through its growth, maturity, and eventual decline.

Maturation

The process of growth and development, either in biological organisms or in organizations as they evolve and reach full potential.

Diffuse

To spread or scatter widely or thinly; often relating to the dissemination of ideas or technologies.

Try-demo Units

Sample products or systems that are offered for trial use to demonstrate their capabilities or features before a purchase decision is made.