Lucas argues that when policies change, expectations will change thereby
A) changing the relationships in econometric models.
B) causing the government to abandon its discretionary stance.
C) forcing the Fed to keep its deliberations secret.
D) making it easier to predict the effects of policy changes.
A
You might also like to view...
If textbook prices rise by 5% this year, and textbook purchases fall by 5% this year, then the price elasticity of demand is:
A) .05. B) .10. C) .55. D) .95. E) 1.0.
Since 1960
A) in every decade, Japan has experienced faster growth than the United States. B) growth rates in South American countries have exceeded those in North America. C) real GDP per person in Hong Kong and Singapore have grown and are approaching or surpassing that in the United States. D) due to rapid growth, real GDP per person in China is now about 50 percent of that in the United States.
When an inflationary gap exists, the job prospects of new college graduates are
A. very dim. B. somewhat encouraging. C. worse in comparison to a recessionary gap. D. excellent.
In a simplified system, a bank receiving a new deposit can extend new loans equal to the amount by which its excess reserves increase
a. True b. False Indicate whether the statement is true or false