Discretionary monetary policy is monetary policy that is based on
A) the judgment of Congress about the current needs of the economy.
B) the judgment of the monetary policymakers about the current needs of the economy.
C) the ups and downs of the stock market.
D) a rule that allows no discretion in how policymakers respond to the state of the economy.
E) rules that depend upon the state of the economy.
B
You might also like to view...
According to the research of economic historians, Southern farms
(a) realized the gains from regional specialization in the production of cotton, tobacco, sugar and rice. (b) used the gang system to increase the production of slaves. (c) were far larger, on average, than farms in the North. (d) were all of the above.
In 1972, one could buy a bag of chips, a pound of hamburger, a package of buns, and a small bag of charcoal for about $2.50 . If the same goods today cost $6.00, then which pair of CPIs would make the cost in today's dollars the same for both years?
a. 60 in 1972 and 150 today b. 65 in 1972 and 156 today c. 75 in 1972 and 160 today d. 90 in 1972 and 145.8 today
A key component of the asset approach to exchange rates is being able to gauge accurately:
a. the price level. b. the rate of inflation. c. expected future exchange rates. d. the GOP gap.
An economy that experiences decreasing real GDP and increasing prices is said to suffer from _____.
(A) Stagflation (B) A depression (C) A recession (D) A business cycle