Advocates of the public-choice view argue that elected officials
a. will always respond to inflation with expansionary policies but will respond to unemployment with restrictive policies.
b. will actively respond to inflation with restrictive policies but are reluctant to respond to unemployment with expansionary policies.
c. will always respond to both inflation and unemployment with expansionary policies.
d. None of the above
D
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Which of the following groups rejects the view that government policy can reduce the rate of unemployment even in the short run because that policy would be undermined by people's incorporation of the anticipated consequences of the policy into their present decisions?
a. classical school b. Keynesian school c. neo-Keynesian school d. rational expectations school e. supply-side school
A change in the discount rate changes the size of the money multiplier.
Answer the following statement true (T) or false (F)