Which of the following criteria need NOT be satisfied for choosing a policy instrument?
A) The variable must be measurable.
B) The variable must be controllable.
C) The variable must be predictable.
D) The variable must be transportable.
D
You might also like to view...
The time lags, which must be either reduced or known with some precision if fiscal policy is to be an effective stabilizing technique, are the lags between
A) the beginning of a cyclical movement and its recognition. B) the decision that compensatory action should be taken and the enactment of tax or expenditure changes. C) the increase or decrease in net government receipts and their final effects on total spending. D) all of the above, because a significant miscalculation with respect to any of these lags could increase aggregate instability.
The main tools that the Fed can use to alter the reserves of commercial banks are the required-reserve ratio and the following, except:
A. Exchange rate B. Discount rate C. Interest on reserves D. Open market operations