3) An example of nondiscretionary policymaking is A) a nule under which the Fed targets the inflation rate. B) expansionary fiscal policy. C) changes in the interest rate initiated by the Fed. D) a Congressional tax-rate cut aimed at boosting real GDP. 4) The Federal Reserve is anticipating a contractionary period in the economy. The Fed decides to engage in open market operations to stimulate the economy. This action is A) active policymaking. B) passive policymaking. C) the monetary rule. D) nondiscretionary rule.
3) An example of nondiscretionary policymaking is A) a nule under which the Fed targets the inflation rate. B) expansionary fiscal policy. C) changes in the interest rate initiated by the Fed. D) a Congressional tax-rate cut aimed at boosting real GDP. 4) The Federal Reserve is anticipating a contractionary period in the economy. The Fed decides to engage in open market operations to stimulate the economy. This action is A) active policymaking. B) passive policymaking. C) the monetary rule. D) nondiscretionary rule.
Chapter16: Macro Policy Debate: Active Or Passive?
Section: Chapter Questions
Problem 3.4P
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