An Effective Policy of Governmental Intervention in an Economy Requires

question 73

Multiple Choice

An effective policy of governmental intervention in an 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

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Definitions:

Statute of Frauds

A legal principle that requires certain types of contracts to be written and signed by the parties involved to be enforceable.

Debt of Another

Debt of another involves liabilities or obligations that one party assumes on behalf of another party, typically through a guarantee or cosigning arrangement.

Uniform Electronic Transactions Act

A law adopted by many states in the U.S., which gives legal validity to electronic signatures and records in commercial transactions.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed to be enforceable.