If We Have More Information About the Precise Values of the Parameters

question 36

Multiple Choice

If we have more information about the precise values of the parameters within a given economic model, then

• A)multiplier uncertainty decreases
• B)policies can be more easily implemented
• C)the length of the outside lag becomes less important
• D)the inside lag becomes shorter
• E)all of the above

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Definitions:

Mental States

Conditions of the mind that can affect thoughts, feelings, and behaviors, ranging from everyday mood fluctuations to more serious conditions.

Emotions

Complex psychological states that involve a physiological response and an expressive behavior due to certain stimuli.

Behaviours

The observable actions or reactions of humans or animals in response to external or internal stimuli.

Nativists

Philosophers or scientists who argue that certain skills or abilities are "native" or hard-wired into the brain at birth, contrasting with those who believe in the primacy of the environment (empiricists).