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:

Public Self-Awareness

The awareness of how one is viewed by others and the behavior adjustments made in response to this perception.

Private Self-Awareness

An individual's awareness of their personal thoughts, feelings, and states away from public scrutiny.

Self-Esteem

A person's overall sense of self-worth or personal value, influencing various aspects of their life.

High Standards

The practice of setting superior criteria or expectations, usually in quality or performance.