The argument that ________ receives strong support from the innovative policy response to the recent financial crisis.
A)rules can be too rigid
B)discretionary policies are vulnerable to the time-inconsistency problem
C)money is the sole source of fluctuations in aggregate demand
D)changes in policies can change the coefficients in macroeconometric models

Question

Quizplus · Accepted Answer

The innovative policy response to the recent financial crisis, such as quantitative easing, suggests a willingness to depart from traditional policy rules in the face of exceptional circumstances, giving support to the argument that rules can be too rigid.

The Argument That ________ Receives Strong Support from the Innovative