Final answer:
The statement is false. Following a rule for monetary policy does not eliminate the time-inconsistency problem in a central bank.
Step-by-step explanation:
The statement is false. If a central bank followed a rule for monetary policy, it would not necessarily eliminate the time-inconsistency problem.
The time-inconsistency problem refers to a situation where a central bank may have an incentive to deviate from its announced policy in the future due to short-term political or economic pressures. Even if a rule is in place, there is no guarantee that the central bank will adhere to it, as external factors can influence their decision-making.