An example of nondiscretionary policymaking is
A)the monetary rule.
B)expansionary fiscal policy.
C)changes in the interest rate initiated by the Federal Government.
D)a tax cut to stimulate the economy.

Question

Quizplus · Accepted Answer

Nondiscretionary policymaking refers to policies that are implemented automatically without any specific intervention or discretion from policymakers. The monetary rule is a set of guidelines that dictate how a central bank should adjust interest rates based on changes in the economy. This policy is not subject to the discretion of individual policymakers and is therefore an example of nondiscretionary policymaking. The other options involve deliberate actions by policymakers and are therefore not examples of nondiscretionary policymaking.

An Example of Nondiscretionary Policymaking Is