The Time-Inconsistency Problem with Monetary Policy Tells Us That,if Policymakers

question 63

Multiple Choice

The time-inconsistency problem with monetary policy tells us that,if policymakers use discretionary policy,there is a higher probability that the ________ will be higher,compared to policy makers following a behavior rule.

• A)inflation rate
• B)unemployment rate
• C)interest rate
• D)foreign exchange rate

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Definitions:

Neurologic Disorder

A range of conditions affecting the nervous system, including the brain, spinal cord, and nerves, often resulting in functional impairments.

Rubella

A viral infection that can cause intellectual disabilities and heart disease in the embryo. Also called German measles.

Birth Defects

Abnormalities present at birth that can cause physical or mental disability, ranging from mild to severe.

Intellectual Disabilities

Disabilities characterized by significant limitations both in intellectual functioning and in adaptive behavior, covering many everyday social and practical skills.