There is considerable discussion of whether an activist policy approach is preferable over a strict rule approach.In this discussion, which of the following has been established?
A) active policy is not impossible, but a full-employment bias may create too much inflation
B) no activist policy rule has ever been created
C) no exceptions to the imposed rule should ever be made even under extreme circumstances, otherwise policy makers lose credibility
D) the economy can successfully be fine tuned as long as monetary policy decisions are announced in advance
E) none of the above
Correct Answer:
Verified
Q27: After the attack on the World Trade
Q28: If the monetary growth rate is far
Q29: Trying to stabilize the economy through discretionary
Q30: Imposing policy rules
A)reduces the risk that policy
Q31: Economists who believe that a large unemployment-inflation
Q33: Imposing an active monetary growth rule that
Q34: Which of these economists proposed that economic
Q35: If policy makers were convinced that the
Q36: When trying to stabilize the economy, it
Q37: Advanced announcements of monetary policy changes are
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents