Discretionary monetary policy is defined as policy
A)that is pursued regardless of the current state of the economy.
B)for which the markets make all decisions.
C)that responds to a changing economy with predetermined rules.
D)that is based on the judgments of policymakers.
E)for which the policymaker always publicizes the policy as extensively as possible because its effectiveness depends on the public's knowledge of the policy.

Question

Quizplus · Accepted Answer

Discretionary monetary policy involves decisions made by policymakers based on their judgment and assessment of the current economic conditions, rather than following predetermined rules.

Discretionary Monetary Policy Is Defined as Policy