Multiple Choice
Policy is conducted via a rule if policymakers
A) use monetary and fiscal policy only when the political situation dictates it.
B) set monetary and fiscal policy according to multiple but predetermined goals.
C) a free to respond to unexpected changes in economic conditions.
D) announce in advance how they will respond to changes in economic conditions.
Correct Answer:

Verified
Correct Answer:
Verified
Q18: An index constructed by Alberto Alesina and
Q19: The Federal funds rate<br>A)is the interest rate
Q20: On October 6,1979,the Federal Reserve abandoned the
Q21: The Taylor rule relates<br>A)inflation rates to unemployment
Q22: An argument against inflation targeting is that<br>A)the
Q24: Which of the following statements is (are)correct?
Q25: If the great majority of shocks to
Q26: If the Fed has the discretion to
Q27: Unlike a money supply target,an inflation rate
Q28: Which of the following statements is (are)correct?