Question: I need help in understanding monetary policy under this prompt. I have been debating if it is A or D, or something else all together.

I need help in understanding monetary policy under this prompt. I have been debating if it is A or D, or something else all together.

Some discretion in monetary policy is socially desirable because

a.there is a need to adjust policy according to specific situations when the range of possible circumstances is complex.

b.the ability of policymakers to change policies at will is necessary to make the political system responsive to the voters' demands.

c.investment would always be higher if the public expects the central bank to deviate from its announced policies.

d.fiscal policy is discretionary and must be counterbalanced by discretion in monetary policy.

e.all of the above.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!