Which of the following is the best explanation for why President Harry Truman on

Question

Which of the following is the best explanation for why President Harry Truman once said that he wanted to find a one-armed economist?

a. President Truman received input from so many economists that he only wanted one view from each.

b. A one-armed economist would conduct only positive analysis and no normative analysis.

c. President Truman thought economists should analyze policies but not make or enforce them.

d. Economists understand that most policy decisions involve trade-offs so they are likely to present multiple views of policies.

Explanation / Answer

d. Economists understand that most policy decisions involve trade-offs so they are likely to present multiple views of policies.

Let us look at the exact quote of Harry Truman -

"On the one hand, this" and "On the other hand, that".

Truman is basically pointing towards, the policy tradeoffs. For e.g. - During recession, the economist usually suggest that govt should increase its spending to overcome the loss in the output. However, an increase in spending will result in greater fiscal deficit. Thus reflecting a trade off in the policy decision.

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