The rational expectations perspective suggests that:
A. fiscal policy is more powerful than monetary policy.
B. monetary policy is more powerful than fiscal policy.
C. fiscal and monetary policy are not likely to achieve their stated aims.
D. fiscal policy works only to the extent that it is accompanied by fully anticipated changes in
the money supply.
C. fiscal and monetary policy are not likely to achieve their stated aims.
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Examining U.S. business cycles over time reveals that they ________
A) occur at regular intervals B) are of uniform duration C) are of similar magnitude D) all of the above E) none of the above
How is the equilibrium price determined? What happens if the price is above the equilibrium price? What happens if the price is below the equilibrium price?
What will be an ideal response?
Government expenditures are a subcategory of government outlays
a. True b. False