An Effective Policy of Governmental Intervention in the Economy Requires

question 153

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

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Definitions:

Erratic

Unpredictable and inconsistent in behavior or pattern; often used to describe sudden changes in behavior or mood.

Neurotransmitters

Chemical messengers that transmit signals across the synapse from one neuron to another, influencing a wide range of bodily functions and behaviors.

Neurons

Cells in the nervous system that transmit information through electrical and chemical signals.

Communication

The exchange of information, thoughts, or messages through speech, signals, writing, or behavior.