What philosophy of economic adjustment is against tying the hands of the central bank?
A) rules
B) discretion
C) prudence
D) inclination

Question

Quizplus · Accepted Answer

Discretionary philosophy of economic adjustment is against tying the hands of the central bank. Discretionary philosophy suggests that the central bank should have flexibility in responding to economic conditions and use its judgment to make appropriate policy decisions. In contrast, rules-based philosophy advocates for clear and specific policy guidelines, which restrict the central bank's decision-making authority. Prudence and inclination are not philosophies of economic adjustment.

What Philosophy of Economic Adjustment Is Against Tying the Hands