Multiple Choice
Imposing policy rules
A) reduces the risk that policy makers will react to disturbances in unpredictable ways
B) appeals to economists who assume the economy is very unstable
C) always implies that the growth rate of money supply has to be kept constant
D) only works if there is a large tradeoff between unemployment and inflation
E) all of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q13: After the attack on the World Trade
Q14: Formulating an appropriate policy response to an
Q15: The concept of dynamic inconsistency implies that
Q16: Which of these economists proposed that economic
Q17: The outside lag is defined as the
Q19: If a central bank believes that an
Q20: Designing successful economic stabilization policy is difficult
Q21: Imposing an active monetary growth rule that
Q22: If a central bank employs policies that
Q23: The temptation to engage in dynamic inconsistency