A Clear-Cut "Rules Versus Discretion" Debate Is No Longer Possible

question 73

Multiple Choice

A clear-cut "rules versus discretion" debate is no longer possible because those economists advocating rules for ________,such as ________,must leave the Fed with plenty of discretionary power.

• A)policy instruments,the money supply
• B)policy instruments,the inflation rate
• C)target variables,the money supply
• D)target variables,the inflation rate

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Definitions:

Interval Scale

A type of measurement scale that includes ordered categories with equal intervals between values but lacks a true zero point.

Normal Distribution

The normal distribution is a bell-shaped curve describing the spread of a characteristic throughout a population, where most occurrences take place near the mean value, decreasing symmetrically in both directions.

Skewed

A distribution that is not symmetrical, with a majority of data points lying on one side of the mean.