According to the theory of rational expectations,
a. workers' experience tells them that government action to lower unemployment will not affect inflation.
b. consumers and investors generally behave so that rationally formed government attempts to stimulate aggregate demand have their desired effects.
c. policy goals can be achieved easily in the short run.
d. workers' wage demands include anticipated inflation.
e. expansionary monetary policy will lead to permanent interest rate declines.
d
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In the balance of payment accounts, transactions that bring in money are treated as debit and the transactions that take away money are treated as credits
a. True b. False Indicate whether the statement is true or false
Eunice had the option to buy stock or bonds in Company K. She opted to purchase bonds. Given this decision, which of the following is most likely to be Eunice’s objective?
a. She wants a say in how the company is run. b. She wants a safe, predictable payment from her investment. c. She wants the opportunity to achieve a big capital gain. d. She wants to own a portion of the company.