The time-inconsistency problem involves the ________. A) ...

[vHAUNG6011]

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.

[Kedrick2014]

Answer to Question 1

B

Answer to Question 2

C

[vHAUNG6011]

Thanks for the timely response, appreciate it

[xiaomengxian]

TYSM