This question addresses the issue of whether monetary policy should be made by discretionary policy or be implemented according Which of the following statements reflect arguments against policy by rule? Check all that apply. It is impossible for a policy rule to consider all the possible scenarios and specify, in advance, the right policy response. It is better to appoint qualified individuals who will respond to any situation as best they can. The Federal Reserve may use monetary policy to affect the outcome of elections. Monetary rules reduce the flexibility of the Federal Reserve. Monetary rules may lead to a lower sacrifice ratio because the public is more confident that the Federal Reserve will keep inflation low.
This question addresses the issue of whether monetary policy should be made by discretionary policy or be implemented according Which of the following statements reflect arguments against policy by rule? Check all that apply. It is impossible for a policy rule to consider all the possible scenarios and specify, in advance, the right policy response. It is better to appoint qualified individuals who will respond to any situation as best they can. The Federal Reserve may use monetary policy to affect the outcome of elections. Monetary rules reduce the flexibility of the Federal Reserve. Monetary rules may lead to a lower sacrifice ratio because the public is more confident that the Federal Reserve will keep inflation low.
Chapter15: The Debate Over Monetary And Fiscal Policy
Section: Chapter Questions
Problem 3TY
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