Analysis of Macro Policy and Theory Has Resulted in Which

question 36

Multiple Choice

Analysis of macro policy and theory has resulted in which of the following views?

• A) There should be some self- restraint by policy makers in the use of fiscal or monetary policy.
• B) Economists know more these days to allow for more active policy fine tuning.
• C) A constitutional amendment is the only hope for constraining fiscal policy.
• D) Popular elections for the head of the central bank is the most effective way to constrain monetary policy.
• E) The head of the central bank should be appointed by the prime minister.

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Definitions:

Cardozo Standard

A legal principle named after Justice Benjamin Cardozo, emphasizing the importance of foreseeability and reasonable expectations in determining duty of care.

Privity

In contract law, the relationship that exists between two parties to a contract giving each a recognized interest in the subject matter of the contract so that they are bound to that contract.

Sarbanes-Oxley

A U.S. federal law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Public Company Accounting Oversight Board

A regulatory agency that is charged with the task of making certain that correct, unbiased, and comprehensive data finds their way to potential investors, so that they can make informed decisions about investment opportunities.