Describe time inconsistency and explain how it can be avoided by a central bank setting monetary policy.
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Q46: Which of the following is a disadvantage
Q47: A benefit to policymakers of following rules
Q48: Suppose the federal funds rate is 6
Q49: A system in which the central bank
Q50: How does a central bank establish credibility?
Q52: In inflation targeting, the range that represents
Q53: If the Fed follows the Taylor rule
Q54: Which of the following happened as a
Q55: Usually inflation targets are set for a
A)low
Q56: Suppose the economy is thought to be
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