The rational expectations hypothesis is impeccably logical, but inconsistent with the facts
a. True
b. False
Indicate whether the statement is true or false
True
Economics
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If you want to know the present value of $4,000 in two years and the annual interest rate is 5%, what formula can you use?
A) Present value = $4,000 / (0.05 ) × 2. B) Present value = $4,000 / (1 + 0.05 )2. C) Present value = $4,000 × (1 + 0.05 )2. D) Present value = $4,000 × (1 + 0.05 )/ 2.
Economics
To decrease the money supply, the Fed may
A) buy government securities in the open market. B) decrease the discount rate. C) increase the required reserve ratio. D) b and c E) all of the above
Economics