According to the New Classical Macroeconomists, Each of the Following

question 123

Multiple Choice

According to the new classical macroeconomists, each of the following statements is true EXCEPT

• A) disinflation will be harder to bring about because of the time-inconsistency problem.
• B) policymakers are tempted to deviate from the preannounced policy once the public changes its expectations.
• C) feedback rules are preferred to discretionary rules.
• D) disinflation will be painless if the restrictive policies announced by the government are credible.

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