Multiple Choice
Which of the following is an important advantage of discretionary monetary policy?
A) Influencing the political business cycle
B) Flexibility to deal with changing economic conditions
C) Limiting the opportunities for abuse of power by policymakers
D) Avoiding the time inconsistency of policy problem
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Suppose a tax cut affected aggregate demand
Q12: If the government cut expenditures during an
Q12: Which of the following might explain a
Q14: Which of the following is not an
Q16: Suppose that the central bank must follow
Q31: The economy goes into recession.Which of the
Q43: Explain why fiscal policy actions typically work
Q74: Time inconsistency will cause the<br>A)short-run Phillips curve
Q128: If net exports fall, what actions could
Q143: Explain how a higher rate of return