According to the rational expectations school, people base their expectations about inflation on:
a. the announcement of a change in policy
b. weighted averages of previous inflation rates, with the most distant getting the heaviest weight.
c. all information available to them.
d. changes in monetary policy only.
e. changes in both monetary and fiscal policy.
c
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The characteristic most closely associated with oligopoly is
A. a few large producers. B. easy entry into the industry. C. product standardization. D. no control over price.
In the classical model, the direction of trade is determined by
A) comparative advantage. B) absolute advantage. C) physical advantage. D) which way the wind blows.
In a given year, the value of U.S. exports and imports ________
A) is equal to the value of U.S. foreign exchange transactions B) is a relatively large fraction of U.S. foreign exchange transactions C) is a relatively small fraction of U.S. foreign exchange transactions D) does not involve a foreign exchange transaction
When government revenue exceeds government spending, the nation has a:
A. government budget deficit. B. government budget surplus. C. trade deficit. D. trade surplus.