The Assumption That States Are Single Entities That Can Think

question 68

Short Answer

The assumption that states are single entities that can think about their actions coherently and make choices when exercising power is known as the __________ assumption.

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Definitions:

Time Inconsistency

The phenomenon where a decision-maker's preferences change over time, leading to choices that may not align with their long-term goals.

Monetary Policy

The process by which a central authority, usually a central bank, controls the money supply and interest rates to achieve economic objectives.

2008-2009 Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, initiated in late 2008 due to a financial crisis.

Fiscal Policies

Government policies related to taxation and spending that are used to influence the economy.