Which of the Following Is the Most Powerful Argument for Putting

question 44

Multiple Choice

Which of the following is the most powerful argument for putting restraints on policy makers (as opposed to self- restraint by policy makers themselves) ?

• A) Uncertainty about the timing of policy impacts.
• B) Uncertainty about the natural rate of unemployment.
• C) Time inconsistency.
• D) Disagreements about the proper structure of an econometric model.
• E) Uncertainty about Okun's coefficient.