Do Monetarists Favor Rules or Discretionary Policy? Why

question 98

Essay

Do monetarists favor rules or discretionary policy? Why?

---

Definitions:

Flotation Cost

The expenses incurred when a company issues new securities, including underwriting fees, legal fees, and registration fees.

Corporate Tax Rate

The corporate tax rate is the percentage of a corporation's income that is seized by the government as tax.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from total revenue.

Notes Payable

A written promise to pay a certain amount of money, usually including interest, by a specified date or on demand.