Social Studies, 09.12.2021 19:50 daydallas01
Arguments for discretionary policies include:
a. a policy rules can be too rigid because they cannot foresee every contingency.
b. the time-inconsistency problem can lead to poor economic outcomes.
c. discretionary policies pursue overly expansionary monetary policies to boost employment in the short run but generate higher inflation in the long run.
d. all of the above.
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