Discretionary monetary policy is monetary policy that is based on ...

[pragya sharda]

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.

Question 2

Discretionary monetary policy is defined as policy
 
  A) that is based on the judgments of policymakers.
  B) for which the markets make all decisions.
  C) that is pursued regardless of the current state of the economy.
  D) that responds to a changing economy with predetermined rules.
  E) for which the policymaker always publicizes the policy as extensively as possible because its effectiveness depends on the public's knowledge of the policy.

[isabelt_18]

Answer to Question 1

B

Answer to Question 2

A

[pragya sharda]

Correct answers!

[isabelt_18]

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