Which of the following would occur under a system of policy rules?
A) the decision lag would be nonexistent
B) the government would lose credibility
C) the central bank's independence and authority to make decisions as needed would be enhanced
D) there would be no sacrifice ratio
E) there would be no possibility of Ricardian equivalence

Question

Quizplus · Accepted Answer

Under a system of policy rules, decisions are made based on predetermined guidelines, which eliminates the decision lag as actions are automatic and not subject to delays from decision-making processes.

Which of the Following Would Occur Under a System of Policy