"Time inconsistency" refers to the:
A. tendency for policies with high short-run benefits to have high long-run costs.
B. fallacy that what is true for the short run must be true for the long run.
C. tendency to regularly misjudge in the present what you will do in the future.
D. tendency to misjudge how long it will take to accomplish a future task.
Answer: C
Economics
You might also like to view...
People will want to buy fewer bonds and the interest rate will rise, as the price level
a) falls by more than 50 percent. b) falls by less than 50 percent. c) remains constant. d) rises.
Economics
Excess reserves are equal to:
a. total reserves plus required reserves. b. total reserves multiplied by required reserves. c. total reserves minus loans. d. total reserves minus required reserves. e. required reserves minus loans.
Economics