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The time inconsistency of policy implies that Question 19 options: what policymakers say they will do is generally what they will do, but people don't

The time inconsistency of policy implies that Question 19 options: what policymakers say they will do is generally what they will do, but people don't believe them because of current policy. when people expect that inflation will be low, it is harder for the Central Bank to increase output by increasing the money supply. people will believe the policy will be more inflationary than the Central Bank claims. none of the above

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