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

A policy of government intervention requires objective and informed decision-making, free of political influence. Therefore, the will to reject sound policy if it gets in the way of political considerations is not an essential requirement, but rather an obstacle to effective policy implementation.

An Effective Policy of Governmental Intervention in the Economy Requires