Poorly timed discretionary policy can do more harm than good. Getting the timing right with fiscal policy is​ generally: a. less difficult than with monetary policy. b. far less difficult than with monetary policy. c. about the same difficulty as with monetary policy. d. more difficult than with monetary policy.

Monetary policy is easier to conduct than fiscal policy becausemultiple choicemonetary policy is easier to understand.monetary policy has a much shorter administrative lag than fiscal policy.the Fed has more control of the economy.the economy responds better to monetary policy than fiscal policy.

Monetary policy is considered time-inconsistent becauseA) of the lag times associated with the implementation of monetary policy and its effect onthe economy.B) policymakers are tempted to pursue discretionary policy that is more contractionary in theshort run.C) policymakers are tempted to pursue discretionary policy that is more expansionary in theshort run.D) of the lag times associated with the recognition of a potential economic problem and theimplementation of monetary policy.

How does inflation targeting help reduce the time-inconsistency problem of discretionary policy?

The time-inconsistency problem in monetary policy can occur when the central bankconducts policyA) using a nominal anchor.B) using a strict and inflexible rule.C) on a discretionary, day-by-day basis.D) using a flexible, discretionary rule.

Which of the following is an example of discretionary fiscal policy? Government builds more hospitals as the population ages. An increase in total unemployment benefit payments during a recession due to rising unemployment. An increase in corporate tax collection during an expansion because of more sales. A decrease in total unemployment benefit payments during expansion due to increasing employment. An increase in the interest rate.