Constrained discretion ________.
A)eliminates all discretion in policymaking
B)imposes an inherent discipline on consumers
C)imposes an inherent discipline on policymakers but does not eliminate all flexibility
D)requires policymakers follow a constant growth rate rule for money

Question

Quizplus · Accepted Answer

Constrained discretion refers to a policy approach that limits policymakers' discretion while still allowing for flexibility. It imposes an inherent discipline on policymakers, ensuring that their actions align with predetermined goals or rules. However, it does not eliminate all flexibility, as policymakers have some leeway within the constraints specified. Option A is incorrect because constrained discretion does not eliminate all discretion, and Option B is not relevant to this concept. Option D is incorrect because constrained discretion does not necessarily require policymakers to follow a constant growth rate rule for money.

Constrained Discretion ________