Which of the following statements about monetary rules is CORRECT?
A) Monetary rules prevent policymakers from making things worse when there is a large or persistent shock to the economy.
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

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The Answer of Which of the following statements about monetary rules is CORRECT?
A) Monetary rules prevent policymakers from making things worse when there is a large or persistent shock to the economy.
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.

Which of the Following Statements About Monetary Rules Is CORRECT