Which of the following is correct? In the 1990's
A)the Fed maintained low inflation because it had to follow a policy rule.
B)the Fed maintained low inflation even without being required to follow a policy rule.
C)the Fed was not required to follow a policy rule and let inflation move higher.
D)the Fed was required to follow a policy rule, but it provided the Fed enough discretion that inflation moved higher.

Question

Quizplus · Accepted Answer

In the 1990s, the Federal Reserve, under the leadership of Alan Greenspan, maintained low inflation through discretionary monetary policy rather than being required to follow a strict policy rule.

Which of the Following Is Correct? in the 1990's