Advocates for setting monetary policy by rule rather than discretion often argue that a. central bankers with discretion are tempted to renege on their announced commitments to low inflation. b. central bankers following a rule will be more responsive to the needs of the political process. c. fiscal policy is a much better tool for economic stabilization than is monetary policy. d. it is sometimes useful to give the economy a burst of surprise inflation.

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Principles of Economics (MindTap C...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305585126
BuyFind

Principles of Economics (MindTap C...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305585126

Solutions

Chapter
Section
Chapter 36, Problem 3CQQ
Textbook Problem

Advocates for setting monetary policy by rule rather than discretion often argue that

a. central bankers with discretion are tempted to renege on their announced commitments to low inflation.

b. central bankers following a rule will be more responsive to the needs of the political process.

c. fiscal policy is a much better tool for economic stabilization than is monetary policy.

d. it is sometimes useful to give the economy a burst of surprise inflation.

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Chapter 36 Solutions

Principles of Economics (MindTap Course List)

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