Discretionary Monetary Policy Is Monetary Policy That Is Based on

question 105

Multiple Choice

Discretionary monetary policy is monetary policy that is based on

• A)rules that depend upon the state of the economy.
• B)the ups and downs of the stock market.
• C)the judgement of monetary policymakers about the current needs of the economy.
• D)the judgement of politicians about the current needs of the economy.
• E)a rule that allows no discretion in how policymakers respond to the state of the economy.

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Definitions:

Adapted

Modified to suit a new or specific environment or condition, often referring to organisms in biology.

Inductive Reasoning

Using specific observations and the process of logic and reasoning to arrive at general scientific principles.

Hypothesis

A hypothesis is a proposed explanation for a phenomenon, made as a starting point for further investigation, validation, or refutation through experimentation and observation.

Fungi

A kingdom of spore-producing organisms feeding on organic matter, including molds, yeast, mushrooms, and toadstools.