When Does the Time Inconsistency Problem Arise

question 99

Multiple Choice

When does the time inconsistency problem arise?  

• A) when attempts are made to coordinate monetary policy throughout different time zones 
• B) when there is a lag between the announcement of a monetary policy and the implementation of it 
• C) when policymakers have an incentive to mislead people about their monetary policy intentions 
• D) when policymakers do NOT allow enough time for a new policy to take effect

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