Policy is conducted by discretion if policymakers:
A) size up the economy and choose whatever policy seems appropriate at the time.
B) announce in advance how policy will respond to various situations and commit themselves to following through on this announcement.
C) maintain a constant growth rate of the money supply without making their decision public.
D) announce and achieve a balanced government budget.
E) announce and maintain a constant interest rate.

Question

Quizplus · Accepted Answer

Policy conducted by discretion means policymakers use their judgment to determine what policy action to take based on their assessment of the current economic situation. This could involve changing interest rates, adjusting government spending, or other policy actions based on their own determination of what is necessary at the time.

Policy Is Conducted by Discretion If Policymakers