Multiple Choice
A policy rule:
A) must specify money growth at a constant rate.
B) must specify an active policy.
C) must specify a passive policy.
D) may specify either an active or a passive policy.
Correct Answer:

Verified
Correct Answer:
Verified
Q12: Keeping the money supply constant over the
Q13: The Phillips curve describing an economy
Q14: Is the independence of the central bank
Q15: Automatic stabilizers:<br>A) require congressional action before each
Q16: The concerns of economists who favor passive
Q18: A time-inconsistency problem in macroeconomic policy can
Q19: Computer models of the economy:<br>A) usually consist
Q20: The time between when government spending increases
Q21: Explain why each of the following statements
Q22: Passive economic policy seeks to:<br>A) offset fluctuations