Multiple Choice
Arguments for adopting a policy rule include
A) the time-inconsistency problem can lead to poor economic outcomes.
B) discretionary policies pursue overly expansionary monetary policies to boost employment in the short run but generate higher inflation in the long run.
C) policy makers and politicians cannot be trusted.
D) all of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Suppose that there is a negative aggregate
Q4: Approaches to establishing central bank credibility include<br>A)continued
Q5: The Lucas critique is an attack on
Q6: Arguments for adopting a policy rule include<br>A)discretion
Q7: Approaches to establishing central bank credibility include<br>A)inflation
Q9: The argument that econometric policy evaluation is
Q10: The interest rate thought to have the
Q11: Ending the "Great Inflation" era in the
Q12: The rational expectations hypothesis implies that when
Q13: Potential weaknesses of nominal GDP targeting include<br>A)it