Multiple Choice
A benefit to policymakers of following rules rather than discretion is
A) they could employ a larger staff of economists.
B) they will contribute to the formation of an expectations trap.
C) they would not be able to pursue time-inconsistent policies.
D) they would gain flexibility in case the economy's structure changed.
Correct Answer:
Verified
Correct Answer:
Verified
Q12: Which equation best represents the Taylor rule?<br>A)i
Q13: Suppose the economy is thought to be
Q14: If the growth rate of the money
Q15: Which of the following best describes the
Q16: Why does the Taylor rule have such
Q18: Which terms in the equation for Taylor
Q19: The Fed is said to tighten policy
Q20: Which of the following is likely to
Q21: If the velocity of money in an
Q22: Usually inflation targets are set for a<br>A)low