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Author Question: Which of the following is most consistent with the time-inconsistency problem? A) while it is ten ... (Read 123 times)

elizabeth18

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on: Jun 30, 2018
Which of the following is most consistent with the time-inconsistency problem?
 
  A) while it is ten o'clock in the morning in Chicago, it will be eleven o'clock in New York City
  B) a monetary policy action that is implemented in January will not begin to influence economic variables for several months
  C) a parent who acquiesces to a child's demand just to keep them quiet in a public setting
  D) an economic model with adaptive expectations

Question 2

A small open economy
 
  A) is unable to affect the world real interest rate by its borrowing and lending decisions.
  B) will always be a net borrower from abroad.
  C) will always be a net lender abroad.
  D) is almost never able to borrow abroad.


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cswans24

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

A


elizabeth18

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Reply #2 on: Jun 30, 2018
Thank you :)


cswans24

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Reply #3 on: Jun 30, 2018
Happy to help you


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