The "Time Inconsistency" Argument Is That a Downward Shift of the Short-Run

question 91

Multiple Choice

The "time inconsistency" argument is that a downward shift of the short-run Phillips Curve,which comes about with a ________ of inflationary expectations,is more likely when monetary policy ________.

• A)lowering,follows a rigid rule
• B)lowering,is at the discretion of policymakers
• C)raising,follows a rigid rule
• D)raising,is at the discretion of policymakers

---

Definitions:

ATP

Adenosine triphosphate, a high-energy molecule used for energy storage and transfer within cells.

Electron Transport Chain

A series of complexes that transfer electrons from electron donors to electron acceptors via redox reactions, coupled with the transfer of protons across a membrane, generating ATP.

Proton Gradient

A gradient of hydrogen ions (protons) across a membrane, used as a source of energy for processes like ATP synthesis.

Potential Energy

The energy held by an object because of its position relative to other objects, stresses within itself, its electric charge, or other factors.