To stabilize the economy, monetarists and rational expectations economists
A)would like a monetary rule to be adopted.
B)would like to see coordination failures eliminated.
C)recommend the use of discretionary fiscal policy.
D)recommend the use of discretionary monetary policy.

Question

Quizplus · Accepted Answer

Monetarists and rational expectations economists generally advocate for a monetary rule, which involves setting a fixed rule for monetary policy to provide predictability and avoid the negative effects of discretionary policy.

To Stabilize the Economy, Monetarists and Rational Expectations Economists