As uncertainty about the effects of policy on output decreases,we would expect that
A)policy makers would be 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

When 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 greater confidence in the outcomes of their actions. This makes both A and B correct, leading to D as the correct choice.

As Uncertainty About the Effects of Policy on Output Decreases,we