The argument based on the Tinbergen principle that points to fiscal and monetary policy as two instruments directed at two target variables unemployment and inflation) to conclude that there is no implicit trade-off between the twin objectives of low inflation and low unemployment
A) is correct because fiscal and monetary policy are set independently by two different branches of government.
B) is incorrect because both fiscal and monetary policy work by manipulating aggregate demand.
C) is incorrect because neither type of policy is effective in a world accurately described by a rational-expectations model.
D) b and c only.
E) none of the above.

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The Answer of The argument based on the Tinbergen principle that points to fiscal and monetary policy as two instruments directed at two target variables unemployment and inflation) to conclude that there is no implicit trade-off between the twin objectives of low inflation and low unemployment
A) is correct because fiscal and monetary policy are set independently by two different branches of government.
B) is incorrect because both fiscal and monetary policy work by manipulating aggregate demand.
C) is incorrect because neither type of policy is effective in a world accurately described by a rational-expectations model.
D) b and c only.
E) none of the above.

The Argument Based on the Tinbergen Principle That Points to Fiscal