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:

Pay Bills

The act of settling outstanding accounts payable or obligations, usually referring to the remittance of money to creditors.

Bank Deposit Form

A document used to deposit funds into a bank account, specifying details like the account number and deposit amount.

Customer Sales

The revenue earned from selling goods or services to customers.

Checking Accounts

Bank accounts from which money can be withdrawn or transferred to others via checks, debit cards, or electronic methods.