Those who believe in the rational expectations hypothesis advocate

A. active fiscal policy during recessions.
B. active monetary policy during inflationary periods only.
C. no policy intervention.
D. active monetary policy during recessions.

Answer: C

Economics

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A) a mixed B) an upside-down U-shaped C) a positive D) no E) a negative

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The market produces too little of a good with ______.

a. adverse selection b. negative externalities c. positive externalities d. asymmetric information

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