The only difference between adaptive and rational expectations is that the theory of adaptive expectations assumes economic agents to be irrational

The 1991 Maastricht Treaty can be best described as

A) a peace treaty between Europe and the United States. B) an agreement for the accession of the Netherlands into the EU. C) an agreement for the creation of a free trade area. D) a provision for the introduction of a single European currency and European central bank. E) the beginning of a floating exchange rate European monetary system.

A secondary effect of installment credit was the

(a) development of a new market in used durables. (b) emergence of a new network of dependable supplies of electric power. (c) surge in prices. (d) increased government intervention in household activity.