Solved

Economists Are More Likely to Be in Favor of a Strict

Question 4

Multiple Choice

Economists are more likely to be in favor of a strict monetary policy rule if they


A) believe that the Phillips curve is close to vertical even in the short run
B) believe that the economy is basically self-correcting
C) want to minimize the problem of dynamic inconsistency
D) favor a truly independent central bank
E) all of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q1: The Fed should be much more independent

Q2: Even the most successful economic forecasters make

Q3: Multiplier uncertainty is a major handicap for

Q5: A big advantage of automatic stabilizers is

Q6: Multiplier uncertainty is defined as uncertainty about<br>A)the

Q7: The macroeconomic forecast of the Congressional Budget

Q8: A central bank that is independent of

Q9: Generally speaking, automatic fiscal stabilizers<br>A)raise the level

Q10: Most economists believe that<br>A)the expectations of firms

Q11: If policy makers were convinced that the