If policymakers are free to analyze events as they occur and choose whatever policy seems appropriate at the time, then this is:
A) policy by rule.
B) policy by discretion.
C) monetary policy.
D) fiscal policy.

Question

Quizplus · Accepted Answer

Policy by discretion allows policymakers to make decisions based on the current situation without being strictly bound by predetermined rules or procedures. This provides flexibility in response to changing circumstances, but also carries the risk of inconsistency or potential political bias. Monetary and fiscal policy refer to specific tools and actions that can be taken within a policy framework, but do not necessarily dictate how policymakers make decisions.

If Policymakers Are Free to Analyze Events as They Occur