An Opponent of Monetary Policy Decisions by Rule Would Point

question 104

Multiple Choice

An opponent of monetary policy decisions by rule would point to which of the following as support of his case?

• A)time inconsistency of policy
• B)flexibility to confront unforeseen circumstances
• C)political business cycle
• D)the ability to craft rules that account for all possible contingencies in advance

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Definitions:

Psychiatrists

Medical doctors specialized in the diagnosis, treatment, and prevention of mental illnesses, capable of prescribing medication.

Obedience Studies

Research focused on understanding how and why individuals comply with commands or orders from authorities, even when such orders may conflict with personal conscience.

Severe Shocks

Intense or extreme disturbances or impacts, usually referring to economic, environmental, or psychological events that have significant negative effects.

Evolutionary Theory

A scientific theory that describes the processes by which organisms change over generations due to changes in heritable physical or behavioral traits.