Do Monetarists Favor Rules or Discretionary Policy? Why

question 98

Essay

Do monetarists favor rules or discretionary policy? Why?

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Definitions:

Fixed Costs

Costs that do not change with the level of output produced by the firm, such as rent, salaries, or loan repayments.

Positive Reinforcement

A method in behavior psychology where a positive stimulus is presented after a desired behavior, increasing the likelihood of that behavior in the future.

Desirable Behaviour

Actions or conduct that are considered favorable or appropriate in a particular context.

Frequency

A measure of how often an event occurs.