单选题

Compared to using a fixed-rule monetary policy, using a feedback rule monetary policy(     )。

【正确答案】 C
【答案解析】

Because of monetary policy lags, changes in the growth rate of the money supply indicated by a feedback rule can actually result in an increase in the size of economic cycles. For this reason monetary policy based on a feedback rule will not necessarily stabilize aggregate demand or inflation, although that is their intent. A fixed-rule policy is based on a stable growth rate of the money supply.