The systematic setting of policy according to a formula is known as
A)credibility.
B)an expectations trap.
C)discretionary policy.
D)a rule for monetary policy.

Question

Quizplus · Accepted Answer

The systematic setting of policy according to a formula is known as a rule for monetary policy. This approach is often used by central banks to increase transparency and credibility in their decision-making process. By committing to a specific formula, the central bank can signal its commitment to achieving its economic objectives and provide guidance to markets and the public on its future actions.

The Systematic Setting of Policy According to a Formula Is