The Tinbergen principle of matching policy instruments to target variables states that trade-offs necessarily have to be judged whenever
A) the number of independently operating policy instruments exceeds the number of target variables.
B) the number of independently operating policy instruments equals the number of target variables.
C) the number of independently operating policy instruments falls short of the number of target variables.
D) a and b only.
E) c or b only.

Question

Quizplus · Accepted Answer

The Tinbergen principle suggests that for effective policy implementation, the number of policy instruments should at least match the number of policy targets. If there are fewer instruments than targets (option C), it becomes necessary to prioritize and make trade-offs among the targets, as not all can be directly and effectively addressed.

The Tinbergen Principle of Matching Policy Instruments to Target Variables