Discretionary monetary policy is monetary policy that is based on
A)the ups and downs of the stock market.
B)rules that depend upon the state of the economy.
C)a rule that allows no discretion in how policymakers respond to the state of the economy.
D)the judgment of Congress about the current needs of the economy.
E)the judgment of the monetary policymakers about the current needs of the economy.

Question

Quizplus · Accepted Answer

Discretionary monetary policy relies on the judgment and decisions of monetary policymakers to address the current economic conditions, rather than following strict rules.

Discretionary Monetary Policy Is Monetary Policy That Is Based on