Refer to Figure 13-1. Ceteris paribus, an increase in interest rates would be represented by a movement from

Rational expectations are more accurate than adaptive expectations, ________

A) on average B) always C) because they require less information D) except when policies have changed

The Law of Diminishing Marginal Product is defined as that part of the production function when Total Product declines.

Indicate whether the statement is true or false.