Discretionary monetary policy has the drawback that it
A) must lead to very high inflation.
B) is currently illegal in the United States.
C) makes inflation expectations harder to manage.
D) cannot be implemented using changes in the federal funds rate.
E) None of the above answers is correct.
C
Economics
You might also like to view...
What is the marginal productivity theory of income distribution?
What will be an ideal response?
Economics
With flexible exchange rates, central banks do not have to finance deficits because BOP equilibrium is restored by changes in exchange rates
Indicate whether the statement is true or false
Economics