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

Question

Quizplus · Accepted Answer

An effective policy of governmental intervention in an economy requires the ability to estimate the potential level of output, predict what would happen without intervention, have an assortment of effective tools of discretionary policy, and achieve effective cooperation between fiscal and monetary policy makers. However, the will to reject sound policy if it gets in the way of political considerations would hinder the effectiveness of the intervention.

An Effective Policy of Governmental Intervention in an Economy Requires