Which of the Following Is Most Consistent with the Time-Inconsistency

question 12

Multiple Choice

Which of the following is most consistent with the time-inconsistency problem?

• A)while it is ten o'clock in the morning in Chicago,it will be eleven o'clock in New York City
• B)a monetary policy action that is implemented in January will not begin to influence economic variables for several months
• C)a parent who acquiesces to a child's demand just to keep them quiet in a public setting
• D)an economic model with adaptive expectations

---

Definitions:

Valid Probability

A numerical value representing the likelihood of an event, where the probability is between 0 and 1, inclusive.

Poisson Random Variable

Represents a statistical measure that models the number of times an event happens in a fixed interval of time or space when these events occur with a known constant mean rate independently of the time since the last event.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, calculated as the square root of variance.

Discrete Random Variable

A type of random variable that can take on a countable number of distinct values, often used to model scenarios where outcomes are countable.