The time consistency problem implies that
A) the central bank should not commit.
B) central bank commitment is useful.
C) discretion is better than tying your hands.
D) there are problems we cannot solve.
B
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Which of the following statements is true?
A) Nations have generally moved toward freer international trade policies over the past few decades. B) Nations all over the world have recently raised trade barriers. C) Eastern Europe and the Former Soviet Union countries have reduced trade in the last couple of decades. D) NAFTA lowered trade barriers between the United States and Mexico but raised them between the United States and Canada.
Which of the following is a positive economic statement?
a. Raising the federal minimum wage to $6.50 per hour will cause the rate of unemployment to increase. b. The United States spends too much on welfare. c. Philosophy is not as interesting as economics. d. Cold weather is much more enjoyable than warm weather.