The change in the capital stock is the return on investment.

Economists of the rational expectations school believe that expansionary monetary policy is fully effective only if: a. the policy is anticipated by workers and firms

b. it causes the aggregate supply curve to shift to the left. c. the economy is operating at or above its potential output level. d. policy makers follow through on their previously announced plans. e. the policy is totally unexpected.

When two goods are substitutes for each other, the cross price elasticity of demand

A) will be negative. B) will be zero. C) may be either positive or negative. D) will be positive.