An Effective Policy of Governmental Intervention in an Economy Requires

Multiple Choice

An effective policy of governmental intervention in an 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