Arguments for Discretionary Policies Include

question 29

Multiple Choice

Arguments for discretionary policies include

• A)policy rules can be too rigid because they cannot foresee every contingency.
• B)the time-inconsistency problem can lead to poor economic outcomes.
• C)discretionary policies pursue overly expansionary monetary policies to boost employment in the short run but generate higher inflation in the long run.
• D)all of the above.

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Definitions:

Financial Manager

A professional responsible for managing the financial health of an organization by developing strategies and plans for the long-term financial goals of their organization.

Accounting System

A structured process of collecting, recording, summarizing, and reporting financial transactions to oversee a company's financial health.

Operating Budgets

Detailed projections of income and expenses associated with the daily operations of a company over a specific period.

Financial Control

The management of a company's expenses, income, and assets in order to increase profitability and ensure stability and compliance with financial regulations.