=+ 5. The problem of time inconsistency applies to fiscal policy as well as to monetary policy.

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=+ 5. The problem of time inconsistency applies to fiscal policy as well as to monetary policy. Suppose the government announced a reduction in taxes on income from capital investments, like new factories.

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Brief Principles Of Macroeconomics

ISBN: 9780324590371

5th Edition

Authors: N. Gregory Mankiw

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Question Posted: Sep 28, 2024 04:00 AM

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=+ 5. The problem of time inconsistency applies to fiscal policy as well as to monetary policy.

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Brief Principles Of Macroeconomics

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