A time-consistency problem arises when
A) the best course of action at a particular moment in time differs from the best course of action in general.
B) the best course of action at the beginning is usually the best course of action in general.
C) the best course of action at the end is usually the best course of action in general.
D) there is no way of knowing what the best course of action is in general.
E) the best course of action at a particular moment in time is the same as the best course of action in general.

Question

Quizplus · Accepted Answer

A time-consistency problem arises when the best course of action at a particular moment in time differs from the best course of action in general. This means that a decision made at one point in time may not be the best decision in the long-term, leading to a contradiction or inconsistency in the decision-making process. This could happen in various contexts, such as economic policy, personal decision-making, or strategic planning.

A Time-Consistency Problem Arises When