When Policy Makers Have an Incentive to Announce One Policy

question 140

Multiple Choice

When policy makers have an incentive to announce one policy to shape expectations but then pursue a different policy once those expectations have been formed and acted on,there is

• A)no problem; this is normal behavior
• B)policy credibility
• C)a time-inconsistency problem
• D)rational expectation
• E)None of the answers is correct

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Definitions:

Economy of Canada

The economic structure of Canada, characterized by its extensive natural resources, highly developed trade networks, and diverse sectors including manufacturing, services, and technology.

Family of Origin

Refers to the family unit one is born into, which plays a significant role in shaping an individual's early life experiences, values, and personality.

Possibilities and Limitations

Concepts referring to the potential and constraints in achieving certain goals or outcomes within given contexts or systems.

Weber's Concept

Refers to the theories and methodologies introduced by sociologist Max Weber, including the notion of bureaucracy, Protestant ethic, and the significance of social actions in understanding society.