Of these policies,which is the best example of constrained discretion?
A)the annual federal budget deficit shall not exceed three percent of the GDP
B)the growth rate of the money supply shall be between two percent and five percent
C)macroeconomic policies shall promote rapid economic growth and low inflation
D)macroeconomic policies shall aim to keep inflation - on average over each five-year interval - within a range of two percent to four percent

Question

Quizplus · Accepted Answer

Constrained discretion refers to a policy that allows some flexibility in decision-making within specific limits or constraints. Option D, which sets a range for inflation over each five-year interval, is the best example of this. This policy gives some discretion to policymakers in how they respond to changes in economic conditions, but it also sets clear limits on what is considered an acceptable level of inflation. Options A, B, and C, are not examples of constrained discretion because they set specific targets or goals without any room for flexibility or adjustment.

Of These Policies,which Is the Best Example of Constrained Discretion