According to the theory of rational expectations,
a. workers' experience tells them that government action to lower unemployment will not affect inflation
b. consumers and investors generally behave so that rationally formed government attempts to stimulate aggregate demand have their desired effects
c. policy goals can be achieved more easily in the short run than in the long run
d. workers' wage demands include anticipated inflation
e. expansionary monetary policy will lead to permanent interest rate declines
D
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Majority of international migrants move to:
A. The U.S. and Canada B. Western Europe C. Countries relatively close to their home countries D. Japan and Australia
Refer to Scenario 14.1. Marco and Lisette decide to help each other out and agree to split any medical bills from their doctor. With this new arrangement, Lisette's dominant strategy will give her a net benefit of
A) $45. B) $75. C) $120. D) $150.
Under current U.S. tax laws, individuals do not pay taxes on health insurance benefits they receive from their employers
Indicate whether the statement is true or false
The M1 measure of money consists of the sum of:
A. currency, checking deposits, and savings deposits. B. checking deposits and travelers' checks. C. currency and travelers' checks. D. currency, checking deposits, and travelers' checks.