4. The time inconsistency of discretionary policy arises because policymakers a. want to renege on announced plans

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4. The time inconsistency of discretionary policy arises because policymakers

a. want to renege on announced plans after people have acted on their expectations.

b. believe they are better at forecasting economic conditions than they really are.

c. fail to fully anticipate all shocks to the economy.

d. think that people form expectations adaptively rather than rationally.

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Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

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Question Posted: Sep 30, 2024 08:00 AM

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4. The time inconsistency of discretionary policy arises because policymakers a. want to renege on announced plans

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Macroeconomics

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