An opponent of monetary policy decisions by rule would point to which of the following as support of his case?
A)time inconsistency of policy
B)flexibility to confront unforeseen circumstances
C)political business cycle
D)the ability to craft rules that account for all possible contingencies in advance

Question

Quizplus · Accepted Answer

An opponent of monetary policy by rule would argue that flexibility is necessary to address unforeseen economic circumstances, which rules may not adequately accommodate.

An Opponent of Monetary Policy Decisions by Rule Would Point