Economists who back the use of rules by the Fed believe that they would result in
A)a lower government budget deficit.
B)increased credibility for Fed actions.
C)the eventual adoption of price controls.
D)lower growth rates of aggregate supply.

Question

Quizplus · Accepted Answer

Economists who support the use of rules by the Fed believe that it would increase the central bank's credibility in the eyes of the public and the markets. This would lead to more predictable monetary policy actions and improved economic outcomes. The other choices are not directly related to the use of rules by the Fed.

Economists Who Back the Use of Rules by the Fed