Time inconsistency refers to a situation where:
A. we change our minds about what we want in response to gaining complete information.
B. we change our minds about what we want simply because of the timing of the decision.
C. we typically choose the same thing, regardless of when the decision is being made.
D. None of these statements is true.
B. we change our minds about what we want simply because of the timing of the decision.
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Which of the following is the source of revenue for Medicare and Social Security in the United States?
A) individual income taxes B) social insurance taxes C) sales taxes D) property taxes
Suppose you recently took a pay cut of 2% at your job. You expect the price level to fall by 3% during this year. What would be the impact on your real wage?
a. The real wage would fall by 3% b. The real wage would rise by 3% c. The real wage would fall by 1% d. The real wage would rise by 1% e. The real wage would be unchanged