As uncertainty about the effects of policy on output decreases, we would expect that:
A) policy makers would more frequently implement fine tuning policies.
B) policy makers would implement more active policies.
C) policy makers would implement less active policies.
D) Both A and B.
E) Both A and C.

Question

Quizplus · Accepted Answer

As uncertainty about the effects of policy on output decreases, policymakers are more likely to implement fine-tuning policies and more active policies because they have a clearer understanding of the potential outcomes and impacts of their actions.

As Uncertainty About the Effects of Policy on Output Decreases