Arguments for Discretionary Policies Include

Multiple Choice

Arguments for discretionary policies include

A) policy rules can be too rigid because they cannot foresee every contingency.
B) policy rules do not easily incorporate the use of judgment.
C) discretion avoids the straightjacket that would lock in the wrong policy if the model that was used to derive the policy rule proved to be incorrect.
D) discretion enables policy makers to change policy settings when an economy undergoes structural changes.
E) all of the above.