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 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
D
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Private entrepreneurs are likely to make better investment decisions than central planners because
What will be an ideal response?
What does each point on the production possibilities curve represent? (check all that apply)
a. Inefficiency in production b. Efficiency in production c. The maximum output of two products d. The maximum output of many products
According to the factor-price equalization theorem, free trade between any two countries equalizes
A. product prices between the countries but not the prices of individual factors of production. B. average national income per person in the countries. C. product prices between the countries and factor prices within each country but not between the countries. D. product prices as well as the prices of individual factors of production between the countries.
When economists say investment is autonomous, they mean that investment is independent of the level of saving.
a. true b. false