The case for a "hands off" economic policy is based on the widely held belief that
A)Fiscal policy works but monetary policy does not.
B)Monetary policy works but fiscal policy does not.
C)Discretionary policy can improve the economy but is often impractical.
D)Economic theory is inadequate to formulate effective discretionary policy.

Question

Quizplus · Accepted Answer

The case for a "hands off" economic policy is based on the belief that discretionary policy can improve the economy, but it is often impractical. This means that policymakers may not be able to accurately predict the impact of their actions, and that there may be unintended consequences. Therefore, the best course of action may be to allow market forces to determine economic outcomes without interference from government policy.

The Case for a "Hands Off" Economic Policy Is Based