A monetary policy rule is ______ to discretionary monetary policy because______. A. Superior; discretion limits what the
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A monetary policy rule is ______ to discretionary monetary policy because______.
A. Superior; discretion limits what the Fed can do in a financial crisis
B. Inferior; a rule makes it harder for people to forecast the inflation rate
C. Superior; a rule keeps inflation expectations anchored
D. Equivalent; the Fed uses its discretion to set the rule
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C By stabilizing inflation expect...View the full answer
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