An effective policy of governmental intervention in the economy requires all of the following except one.Which is the exception?
A)The will to reject sound policy if it gets in the way of political considerations
B)The ability to estimate the economy's potential level of output
C)The ability to predict what would happen without intervention
D)An assortment of effective tools of discretionary policy
E)The ability to achieve effective cooperation between fiscal and monetary policy makers

Question

Quizplus · Accepted Answer

All the other options are necessary for an effective policy of governmental intervention in the economy. However, if political considerations are given priority over sound policy, the intervention may not produce desirable results. It is important for policy makers to prioritize the well-being of the economy over political gain.

An Effective Policy of Governmental Intervention in the Economy Requires