In the management of the Australian economy:
A) both monetary and fiscal policy are implemented according to a rule- based approach
B) fiscal policy is implemented according to a rule- based approach
C) monetary policy is implemented according to a rule- based approach
D) neither monetary policy nor fiscal policy are implemented according to a rule- based approach

Question

Quizplus · Accepted Answer

Monetary policy in Australia is implemented by the Reserve Bank of Australia (RBA) using a rule-based approach, specifically targeting inflation within a certain range. Fiscal policy, however, is more discretionary and not strictly rule-based.

In the Management of the Australian Economy