The Fed's eclecticism reflects:
A) A combination of flexible rules and limited discretion.
B) Fixed rules that are set for monetary growth rates.
C) Discretionary policy but not rules.
D) The targeting of interest rates as the primary goal to be achieved by monetary policy.

Question

Quizplus · Accepted Answer

The Fed's eclecticism means that they use a combination of flexible rules (such as targeting inflation or unemployment) and limited discretion (meaning they stay within certain boundaries or guidelines) to carry out monetary policy. This allows for some flexibility in responding to economic conditions while also maintaining some constraints on decision-making.

The Fed's Eclecticism Reflects