Which of the Following Would Eliminate the Time Inconsistency Problem

question 165

Multiple Choice

Which of the following would eliminate the time inconsistency problem?

• A)Each of the following would eliminate the time inconsistency problem.
• B)When lags associated with monetary and fiscal policy are extremely short.
• C)When discretionary macro policy is replaced with fixed policy rules which are well publicized.
• D)When expectations about the economy adjust very slowly.
• E)None of the above.

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Definitions:

Political Skill

The ability to effectively understand others at work and to use such knowledge to influence others to act in ways that enhance one’s personal or organizational objectives.

Dimensions

Aspects or features that can be measured in terms of length, width, height, or depth.

Gossip

Informal and often sensational talk about other people that may not be confirmed as true.

Accuracy

The level of correctness or precision in information, measurements, or outcomes.