Stephen Cecchetti argues that the Fed should
A) follow a precise mechanical rule.
B) follow a rule that could vary some based on the economic forecasts of a forecasting model.
C) Be allowed discretion but announce a numerical target for inflation.
D) Have complete discretion without a rule and without needing to announce targets.
Correct Answer:
Verified
Q4: A permanent reduction in inflation would
A)permanently reduce
Q6: The time inconsistency of monetary policy means
Q6: If a central bank were required to
Q13: Inflation
A)causes people to spend more time reducing
Q16: If a government managed to reduce the
Q22: Suppose that the central bank must follow
Q25: A program to reduce inflation is likely
Q35: Suppose that the central bank is required
Q43: All of the following are arguments against
Q106: If inflation falls it
A) causes people to
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