Discretionary Monetary Policy Is Defined as Policy for Which

question 62

Multiple Choice

Discretionary monetary policy is defined as policy for which

• A) the markets make all decisions.
• B) policy is based on the judgments of policymakers.
• C) the policy is pursued regardless of the current state of the economy.
• D) the policy responds to a changing economy with predetermined rules.
• E) the policy maker always publicizes the policy as extensively as possible because its effectiveness depends on the public's knowledge of the policy.

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Definitions:

Constricted

Limited or narrowed in scope or freedom; often refers to a feeling of tightness or restriction in emotional expression or physical space.

Dim Light

Low-intensity illumination that provides a subdued visual environment.

Cornea

The clear, dome-shaped front surface of the eye that helps to focus light onto the retina.

Window

An opening in the wall of a building, vehicle, or container, typically covered with glass, that allows light and air to enter and people to see out; metaphorically, an opportunity or period of time.