In comparing monetarism and rational expectations theory we find that

A) both favor policy rules and for the same reasons.
B) both favor policy rules,but for different reasons.
C) both favor discretionary policies.
D) the former favors discretionary policy,while the latter favors policy rules.
E) the former favors policy rules,while the latter favors discretionary policy.

Monetarism

An economic theory that emphasizes the role of governments in controlling the amount of money in circulation as a primary method for stabilizing the economy and controlling inflation.

Rational Expectations Theory

An economic theory that suggests individuals use all available information and make decisions based on their rational outlook, expectations, and available resources.

Discretionary Policies

Economic policies based on judgment and choices by policymakers rather than set rules, often involving government spending and taxation decisions.