Discretionary Monetary Policy Has the Drawback That It

question 65

Multiple Choice

Discretionary monetary policy has the drawback that it

• A) must lead to very high inflation.
• B) is currently illegal in the United States.
• C) cannot be implemented using changes in the federal funds rate.
• D) makes inflation expectations harder to manage.
• E) None of the above answers are correct.

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Definitions:

American Medical Association

A professional association and lobbying group of physicians and medical students in the United States, aiming to promote the art and science of medicine for better public health.

Otorhinolaryngologist

A medical specialist focused on the treatment of diseases and conditions of the ear, nose, and throat (ENT), as well as related structures of the head and neck.

Nephrologist

A medical doctor specializing in the diagnosis and treatment of kidney diseases.

Pediatrician

A medical doctor specializing in the care and treatment of children's diseases and health issues.