Multiple Choice
The argument that ________ receives strong support from the innovative policy response to the recent financial crisis.
A) rules can be too rigid
B) discretionary policies are vulnerable to the time-inconsistency problem
C) money is the sole source of fluctuations in aggregate demand
D) changes in policies can change the coefficients in macroeconometric models
Correct Answer:

Verified
Correct Answer:
Verified
Q20: Central bank credibility may be established by
Q21: If households have information that monetary policy
Q22: The tendency to deviate from sound long-run
Q23: The use of expansionary fiscal and monetary
Q24: Suppose you need an estimate of future
Q26: Monetary policy credibility has the benefit of
Q27: According to the Lucas critique,what is the
Q28: The immediate objective of a nominal anchor
Q29: Robert Lucas spurred the rational expectations revolution
Q30: In 1975 the Swiss National Bank announced