A Situation Where Policymakers Have the Incentive to Deviate from Their

question 36

Multiple Choice

A situation where policymakers have the incentive to deviate from their initial course of action once other agents in the economy have acted is called a(n) :

• A) rational expectation.
• B) outside lag.
• C) time-inconsistent policy.
• D) active policy rule.

---

Definitions:

Standard Deviation

A measure of the dispersion or variability of a set of values, indicating how much the values differ from the mean of the set.

Boys And Girls

Refers to male and female children or adolescents collectively.

Standard Deviation

A measure of the amount of variation or dispersion from the average in a set of data points, representing how spread out the values are.

Larger Contract

A contract or agreement that is significant in terms of its scope, value, or both.