When It Is Difficult to Know the Size and Timing

question 40

True/False

When it is difficult to know the size and timing of monetary policy effects,the central bank should use policy discretion to deal with shocks.

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Definitions:

Relativism

A philosophical position that claims that truth and morality are subjective and vary depending on culture or individual perspective.

Teleological Philosophies

Ethical theories that assess the morality of actions based on their outcomes or purposes rather than on the actions themselves.

Egoism

A theory that suggests individuals should act in their own self-interest and that this action ultimately benefits society as a whole.

Utilitarianism

A moral theory that suggests the best action is the one that maximizes utility, typically defined as maximizing happiness and reducing suffering.