Which of the following is most consistent with the ...

[elizabeth18]

Which of the following is most consistent with the time-inconsistency problem?
 
  A) while it is ten o'clock in the morning in Chicago, it will be eleven o'clock in New York City
  B) a monetary policy action that is implemented in January will not begin to influence economic variables for several months
  C) a parent who acquiesces to a child's demand just to keep them quiet in a public setting
  D) an economic model with adaptive expectations

Question 2

A small open economy
 
  A) is unable to affect the world real interest rate by its borrowing and lending decisions.
  B) will always be a net borrower from abroad.
  C) will always be a net lender abroad.
  D) is almost never able to borrow abroad.

[cswans24]

Answer to Question 1

C

Answer to Question 2

A

[elizabeth18]

Thank you

[cswans24]

Happy to help you