Because of uncertainty in the choice policy of instruments, economists prefer to minimize risk by
A) sticking with a proven policy instrument.
B) implementing policy only when long-term costs have been determined.
C) using a mix of policy instruments.
D) outsourcing the choice of policy instruments.
E) using only expansionary policy during recessions and letting expansions run their course.

Question

Quizplus · Accepted Answer

Economists often prefer to use a mix of policy instruments to minimize risk due to uncertainty in the choice of policy instruments. This approach allows for flexibility and the ability to adjust strategies as conditions change, thereby reducing the potential for negative outcomes associated with relying on a single policy instrument.

Because of Uncertainty in the Choice Policy of Instruments, Economists