Which statement about monetary rules is correct?
A) Monetary rules prevent policymakers from using monetary tools.
B) Monetary rules assume the economy is inherently stable.
C) Advocates of monetary rules advise increasing the money supply during recessions and decreasing the money supply to fight inflation.
D) Monetary rules require frequent changes in the money supply.

Question

Quizplus · Accepted Answer

Monetary rules are based on the assumption that the economy is inherently stable and that predictable, rule-based policies can help maintain this stability.

Which Statement About Monetary Rules Is Correct