In comparing monetarism and rational expectations theory we find that
A. both favor policy rules for the same reasons.
B. both favor policy rules, but for different reasons.
C. both favor discretionary policies.
D. the former favors discretionary policy, while the latter favors policy rules.
E. the former favors policy rules, while the latter favors discretionary policy.
B. both favor policy rules, but for different reasons.
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Refer to Scenario 11.1. Suppose all five ranchers know that their land that Mariana needs is worth a total of $2 million
If each rancher agrees to sell his or her parcel of land to Mariana for $600,000, the logical outcome in this situation is for the railway ________ , and the benevolent social planner is ________. A) to be built; pleased B) to be built; indifferent C) not to be built; unhappy D) not to be built; indifferent
If you purchase a $100,000 interest-rate futures contract for 110, and the price of the Treasury securities on the expiration date is 106, your ________ is ________
A) profit; $4000 B) loss; $4000 C) profit; $6000 D) loss; $6000