The rational expectations school advocates the passive rule of a fixed-growth rate monetary policy because:
a. policy makers often do not have enough information to pursue an active policy
b. active intervention is required only if an economy is in recession.
c. a large bureaucracy can be eliminated by following the passive approach.
d. people render active policy ineffective by figuring out what it's going to be and taking actions to offset it.
e. they prefer to emphasize on an active fiscal policy.
d
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Indicate whether the statement is true or false
In a market with a rent ceiling set below the equilibrium rent, the producer and consumer surplus
A) both increase. B) both decrease, but generally not to zero. C) do not change. D) are eliminated. E) are both totally converted into deadweight loss.