Linking policy instruments to target variables are the
A)indices of economic welfare.
B)structural economic relations.
C)exogenous nonpolicy variables.
D)irrelevant side effects.

Question

Quizplus · Accepted Answer

Policy instruments are designed and implemented to achieve specific target variables, such as economic growth or inflation. Linking these instruments to their target variables involves understanding the structural economic relationships that exist between them. Therefore, option B - structural economic relations - is the best choice. The remaining options do not accurately describe the process of linking policy instruments to target variables.

Linking Policy Instruments to Target Variables Are the