Monetary Policy Is Considered Time-Inconsistent Because

question 21

Multiple Choice

Monetary policy is considered time-inconsistent because

• A)of the lag times associated with the implementation of monetary policy and its effect on the economy.
• B)policymakers are tempted to pursue discretionary policy that is more contractionary in the short run.
• C)policymakers are tempted to pursue discretionary policy that is more expansionary in the short run.
• D)of the lag times associated with the recognition of a potential economic problem and the implementation of monetary policy.

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Definitions:

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Viral infections manifesting as small, cauliflower-like lesions on the genital or anal areas, associated with HPV.

Papules

Elevated, solid skin lesions that are typically less than 1 centimeter in diameter.

Penis

A male reproductive organ involved in sexual intercourse and urination.

Repressed Memories

Memories that have been unconsciously blocked due to being associated with a high level of stress or trauma, yet may influence behavior.