According to the rational expectations school, people base their expectations about inflation on:
a. the announcement of a change in policy
b. weighted averages of previous inflation rates, with the most distant getting the heaviest weight.
c. all information available to them.
d. changes in monetary policy only.
e. changes in both monetary and fiscal policy.
c
Economics
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If there is an excess quantity of money, people will buy bonds
Indicate whether the statement is true or false
Economics
Which of the following will be counted as an investment expenditure in the measurement of GDP?
A) purchase of a tractor by a farmer from his neighbor B) purchase of preferred stock in ABC Corporation C) purchase of a newly built tractor by a college fraternity for hay rides at their charity fair D) purchase of an apartment in a newly-built building E) purchase of newly built computers by a municipal government
Economics