This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Application of the time inconsistency problem to monetary policy suggests that, without some ... (Read 93 times)

JMatthes

  • Hero Member
  • *****
  • Posts: 578
on: Jun 30, 2018
Application of the time inconsistency problem to monetary policy suggests that, without some mechanism to ensure commitment, the
 
  A) rate of inflation will be higher than it would be with commitment.
  B) level of real output will be lower than it would be with commitment.
  C) rate of inflation will be higher and the level of real output will be lower than they would be with commitment.
  D) rate of inflation and the level of real output will be higher than they would be with commitment.

Question 2

Inflation might lead to ________ because ________.
 
  A) lower demand for stocks; of tax distortions
  B) lower demand for cash; money does not typically yield interest
  C) uncertain or uneven demand for goods; higher fluctuations in relative prices make it harder for consumers to compare among goods and make rational consumption decisions
  D) all of the above
  E) none of the above


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

rosiehomeworddo

  • Sr. Member
  • ****
  • Posts: 306
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

D


JMatthes

  • Member
  • Posts: 578
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

shailee

  • Member
  • Posts: 392
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Adults in late middle adulthood frequently look forward to spending more time with their partner Adults in late middle adulthood frequently look forward to spending more time with their partner
Results from sequential study of two cohorts tested at three ages and at three different points in t Results from sequential study of two cohorts tested at three ages and at three different points in t
Men and women work the same number of hours a week, but men spend more time on paid work, and women ... Men and women work the same number of hours a week, but men spend more time on paid work, and women ...
Using a vacuum hose and a grounded test light to ground one cylinder at a time on a DIS. This works ... Using a vacuum hose and a grounded test light to ground one cylinder at a time on a DIS. This works ...
Problem Problem
Key foreign policy agencies Key foreign policy agencies
Video: Embryonic development - Weeks 5 to 8

For a complete list of videos, visit our video library