Which of the following is consistent with the argument for hands-off policy?
A) Fixed policy rules.
B) Fine-tuning.
C) Discretionary fiscal policy.
D) Discretionary monetary policy.

Question

Quizplus · Accepted Answer

The argument for a hands-off policy implies that the government should not intervene too much in the economy. Fixed policy rules would provide stability and predictability without requiring constant government intervention. Fine-tuning, discretionary fiscal policy, and discretionary monetary policy would all require more active government involvement in the economy, which goes against the hands-off policy argument.

Which of the Following Is Consistent with the Argument for Hands-Off