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 2
Which best describes a credit default swap?
A) It is designed to reduce interest-rate risk.
B) The issuer receives payments from the buyer in return for agreeing to make payments to the buyer if the security goes into default.
C) Issuers are taking out insurance in case of default.
D) It represents a way for the issuer to establish its creditworthiness.
Primary production is constrained by the most limiting factor.
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