Policy is conducted by discretion if policymakers:
A) announce in advance how policy will respond to various situations and commit themselves to following through on this announcement.
B) are free to size up the situation case by case and choose whatever policy seems appropriate at the time.
C) announce and maintain a constant growth rate of the money supply.
D) announce and achieve a balanced government budget.

Question

Quizplus · Accepted Answer

Policy conducted by discretion involves policymakers being able to make decisions based on their judgment and analysis of individual situations, rather than being bound to a pre-set course of action. Therefore, option B, where policymakers have the freedom to choose whatever policy seems appropriate at the time, describes this type of policy approach. Options A, C, and D involve pre-determined policies rather than discretionary decision-making.

Policy Is Conducted by Discretion If Policymakers