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Adhering to a Monetary Rule,according to Some Economists,is Superior to Discretionary

Question 59

Multiple Choice

Adhering to a monetary rule,according to some economists,is superior to discretionary attempts to "lean against the wind" because


A) it would virtually eliminate business fluctuations.
B) the success of monetary policy since World War II has demonstrated the effectiveness of such a rule.
C) the Fed would be free to concentrate on manipulating interest rates.
D) the lag between policy actions and their economic impact is highly variable and unpredictable.
E) it would allow for more successful fine-tuning of the economy.

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