A monetary rule would make it difficult to respond to unforeseen consequences.

Name: A monetary rule would make it difficult to respond to unforeseen consequences.
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Question

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A monetary rule ties the central bank's actions to a pre-defined set of rules, such as a fixed exchange rate or a target for inflation. This limits the flexibility of the central bank to respond to unforeseen economic shocks or changes in the economy. It can make it difficult to adjust monetary policy to address unexpected circumstances.

A Monetary Rule Would Make It Difficult to Respond to Unforeseen