Multiplier uncertainty is defined as uncertainty about
A)the structure of the economy
B) the length of the outside lag
C) the magnitude of the effects that will result from a particular policy action
D)the accuracy of the indicators that predict the immediate impact of a policy action
E)both A)and C)

Question

Quizplus · Accepted Answer

Multiplier uncertainty refers to the uncertainty regarding the magnitude of the effects that will result from a particular policy action (C) and can also involve uncertainty about the structure of the economy (A), as this structure influences how policy actions translate into economic outcomes.

Multiplier Uncertainty Is Defined as Uncertainty About