In Comparing Monetarism and Rational Expectations Theory We Find That

question 189

Multiple Choice

In comparing monetarism and rational expectations theory we find that

• A)both favor policy rules and for the same reasons.
• B)both favor policy rules,but for different reasons.
• C)both favor discretionary policies.
• D)the former favors discretionary policy,while the latter favors policy rules.
• E)the former favors policy rules,while the latter favors discretionary policy.

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Definitions:

Broker

An individual or firm that acts as an intermediary between buyers and sellers, typically in financial transactions, real estate, or insurance.

Assumes a Risk

A legal doctrine where an individual knowingly exposes themselves to a hazard or danger and is considered to have consented to the risk involved.

Insurer

A company or entity that provides insurance policies to protect individuals or organizations against financial loss or damage.

Premium

A sum paid periodically to the insurer by the insured for covering their risk.