Author Question: The time-inconsistency problem involves the ________. A) difficulties of traveling across time ... (Read 57 times)

vHAUNG6011 · **on:** Jun 30, 2018

The time-inconsistency problem involves the ________.

A) difficulties of traveling across time zones
B) tendency to deviate from good long-run plans in the short-run
C) use of adaptive expectations in building an economic model
D) time lag between the implementation of policy and its ultimate and complete results

Question 2

Limit commitment occurs when

A) collateral is required to get a loan.
B) one cannot borrow as much as necessary to conduct business.
C) one cannot be forced to repay a loan.
D) the bank can sell your loan to another bank.