According to the rational expectations theory,
a. the expected results of government anti cyclical measures are intensified by the actions of businesses and individuals.
b. the easy expansion of the money supply by banks eventually leads to excess productive capacity.
c. the expected results of government anti cyclical measures are offset by the actions of businesses and individuals.
d. the limited expansion of the money supply by banks eventually leads to excess productive capacity.
c. the expected results of government anti cyclical measures are offset by the actions of businesses and individuals.
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In 2012, consumers in Dexter consumed only books and pens. The prices and quantities for 2012 and 2013 are listed in the table above. The reference base period for Dexter's CPI is 2012. What is the CPI in 2013?
A) 59 B) 129 C) 169 D) 102
Scarcity implies that people must
A) be miserable. B) be selfish. C) make choices. D) not be selfish.