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
C
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The present value of a promise to pay $100 one year from now is approximately $90.91 if the interest rate is 10 percent
a. True b. False
Figure 2-1 illustrates the trade-off for a particular student between time spent studying per week and income per week from working part-time. What is the opportunity cost for this person of moving from point a to point b?
a.
$5 of income per week
b.
$10 of income per week
c.
two hours of studying per week
d.
$10 per hour of studying per week
e.
$20 of income per week