Of These Policies, Which Is the Best Example of Constrained

question 2

Multiple Choice

Of these policies, which is the best example of constrained discretion?

• A) the annual federal budget deficit shall not exceed three percent of the GDP
• B) the growth rate of the money supply, with appropriate adjustments for changes in the velocity of money, shall be between two percent and five percent
• C) macroeconomic policies shall promote rapid economic growth and low inflation
• D) macroeconomic policies shall aim to keep inflation -- on average over each five-year interval -- within a range of two percent to four percent,

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Definitions:

Arbitration

A form of alternative dispute resolution where a neutral third party makes a binding decision to resolve a dispute outside of court.

Supreme Court

The highest judicial court in a country or state, typically having the ultimate authority in interpreting laws and the constitution.

Binding Agreement

A legally enforceable contract between two or more parties.

Settlement Agreement

A legally binding contract between parties that resolves a dispute and outlines the terms of the settlement.