An Effective Policy of Governmental Intervention in the Economy Requires

question 14

Multiple Choice

An effective policy of governmental intervention in the economy requires all of the following except one.Which is the exception?

• A)The will to reject sound policy if it gets in the way of political considerations
• B)The ability to estimate the economy's potential level of output
• C)The ability to predict what would happen without intervention
• D)An assortment of effective tools of discretionary policy
• E)The ability to achieve effective cooperation between fiscal and monetary policy makers

---

Definitions:

Learned Response

A reaction or behavior that an individual acquires through conditioning or experience in response to a specific stimulus.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is associated with an unconditioned stimulus in classical conditioning.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without the need for prior learning.

Alfred M Landon

An American politician, who was the Republican candidate for President in 1936 but was defeated by Franklin D. Roosevelt.