According to rational expectations theory, monetary policy will affect output only if it is
A) anticipated.
B) unanticipated.
C) a very large change.
D) a very small change.
E) a policy that has been tried in the past.
A
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Using a good as a medium of exchange confers the benefit that
A) the need to quote so many prices in trade is reduced. B) the need for a double coincidence of wants is greatly increased. C) the need for specialization is reduced. D) transactions costs are increased, but they now may be paid in money terms.
If the resource prices faced by a firm rise, the result is a(n)
a. decrease in supply b. increase in supply c. decrease in demand d. increase in quantity demanded e. decrease in quantity supplied
Which of the following is an example of an increase in government purchases?
a. The government builds new roads. b. The Federal Reserve purchases government bonds. c. The government decreases personal income taxes. d. The government increases unemployment insurance benefit payments.
The age-earnings profile for most people indicates
A) earnings rise continually until a person retires. B) earnings initially decline and then rise continually until retirement. C) that when you adjust for inflation, earnings are constant throughout the entire workplace experience. D) earnings rise until the age of about 50 and then begin to fall until retirement.