Consider an Economic Policy Regime in Which Rules Are Well-Known

question 78

Multiple Choice

Consider an economic policy regime in which rules are well-known but frequently ignored.Which of these statements is true?

• A)This regime might work in the long-run,but is unlikely to produce good outcomes in the short run.
• B)Policymakers in this regime might find that rules are being broken with increasing frequency.
• C)This regime is more likely to be supported by nonactivist,than by activist policymakers.
• D)This regime is more likely to result in high unemployment than in high inflation.
• E)This regime is unlikely to produce large government budget deficits.

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Definitions:

FMVSS 121 Redundancy

Specific redundancy requirements set by Federal Motor Vehicle Safety Standard 121, concerning air brake systems in heavy-duty vehicles to ensure safety even in case of a failure.

100-tooth ABS Reluctor

A ring with 100 teeth used in an Anti-lock Braking System (ABS) to provide the ABS sensor with wheel speed information.

Tire Rotation

The practice of moving the tires of a vehicle from one position to another to ensure even tire wear.

ABS Dash Light

A warning light on the dashboard indicating an issue with the Anti-lock Braking System.