Policy is conducted via a rule if policymakers
A) use monetary and fiscal policy only when the political situation dictates it.
B) set monetary and fiscal policy according to multiple but predetermined goals.
C) a free to respond to unexpected changes in economic conditions.
D) announce in advance how they will respond to changes in economic conditions.
Correct Answer:
Verified
Q43: Throughout the 1980s,the Federal Reserve
A)primarily targeted M1.
B)primarily
Q44: Monetarists are in favor of
A)inflation targeting.
B)interest rate
Q45: If the Federal Reserve "pegs" the interest
Q46: If the Fed has the discretion to
Q47: Assume that the Federal Reserve replaces the
Q49: Assume that targeted inflation is 1 percent.According
Q50: If the central bank targets the money
Q51: Inflation targeting is one policy that attempts
Q52: Unlike a money supply target,an inflation rate
Q53: Policy is conducted via discretion if policymakers
A)announce
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