Author Question: In an attempt to manage expectations, a central bank may prefer to announce an unconditional ... (Read 70 times)

sc00by25 · **on:** Jun 30, 2018

In an attempt to manage expectations, a central bank may prefer to announce an unconditional commitment, because an unconditional commitment ________ than a conditional commitment.

A) is inherently more credible
B) may have an impact on expectations that is stronger
C) places fewer constraints on policy makers
D) is less likely to have unintended consequences

Question 2

A consumer may increase her saving by

A) working more hours and consuming more goods in the present period.
B) working more hours and consuming fewer goods in the present period.
C) working fewer hours and consuming more goods in the present period.
D) working fewer hours and consuming fewer goods in the present period.