1)Time inconsistency means

A)taking different decisions at different times despite facing the same situation.

B)making policy choices that violate economic constraints

C)deciding to do something tomorrow, and then doing something different tomorrow.

D)adding a random factor to decisions.

2)Under usual circumstances, an increase in the discount rate causes

A)the federal funds rate to fall.

B)the federal funds rate to rise.

C)no change in the federal funds rate

D)the supply of reserves to increase.

E)the supply of reserves to decrease.