The government of Montesia had announced that it would keep its ...

[RRMR]

The government of Montesia had announced that it would keep its money supply unchanged in 2010 . However, in 2011, the money supply increased, thereby ruining public expectations. This led to:
 a. no problem; this is normal behavior.
 b. policy credibility.
 c. a time-inconsistency problem.
 d. the development of rational expectations.
  e. an anticipation about the monetary policy.

Question 2

An anti-inflation policy that involves announcing and executing tough measures to stop inflation is called _____.
 a. cold turkey
 b. red tape
 c. a pork-barrel policy
  d. chokehold
 e. time-inconsistency

[Sierray]

Answer to Question 1

c

Answer to Question 2

a

[RRMR]

Thanks for the timely response, appreciate it

[alexanderhamilton]

Excellent