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:

Circuit

An electrical path between two points.

Unity

100%, or 1.

LC Parallel Circuits

Circuits that contain both inductors (L) and capacitors (C) arranged in parallel, affecting the circuit's total impedance and resonance.

Tank

A container designed to hold liquids or gases at a pressure different from the ambient pressure.