One way to overcome the problem of time inconsistency is to
a. legislate policy rules.
b. grant policymakers independence..
c. appoint policy makers with credibility.
d. both a and c.
e. all of the above.
Question 2
Population growth is similar to depreciation, in that ________.
A) each lowers the capital-labor ratio
B) each tends to encourage saving
C) capital wears out faster when used by more workers
D) each helps to explain how economies can sustain a positive growth rate of output
