Business, 24.12.2020 01:50, valensanta2005

The time inconsistency of policy implies that a. what policymakers say they will do is generally what they will do, but people don't believe them because of current policy. b. what policymakers say they will do is usually not what they do, but people believe them anyway. c. when people expect that inflation will be low, it is harder for the Fed to increase output by increasing the money supply. d. people expect Fed policy to be more inflationary than the Fed claims.

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The time inconsistency of policy implies that a. what policymakers say they will do is generally wha...