Which of the following support the idea that monetary policy should be made by a rule?
a. the political business cycle and the time-inconsistency problem
b. the political business cycle but not the time-inconsistency problem
c. the time-inconsistency problem, but not the political business cycle
d. neither the political business cycle nor the time-inconsistency problem
a
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Monetarists argue that the interest elasticity of the demand for money is
a. low, while Keynesians say it is high. b. important in terms of affecting economic activity. c. highly variable. d. an important factor in determining if velocity is stable or unstable.
The legislative immigration restrictions following World War I (1914–18) contributed to which of the following in the 1920s?
(a) An acceleration in the growth in the U.S. population (b) A decline in the rate of household formation in the U.S. (c) Rapid rise in U.S. prices (d) High unemployment in the U.S.