The rational expectations school advocates:
a. Monetarism

b. Keynesianism.
c. the use of fiscal policy.
d. the use of monetary policy.
e. a passive approach to policy.


e

Economics

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Among the benefits of privatization of state owned enterprises is

(a) increased employment. (b) improved efficiency. (c) reduced pollution. (d) all of the above. (e) none of the above.

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If there is currently an inflationary gap, an increase in aggregate demand will make the inflationary gap smaller, but a decrease in aggregate demand would make the inflationary gap larger

a. True b. False Indicate whether the statement is true or false

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The external debt can place a continuing burden on the United States by reducing consumption in the United States

Indicate whether the statement is true or false

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Why does a tax change affect aggregate demand?

a. A tax change alters saving by an equal amount. b. A tax change alters imports and net exports. c. A tax change alters government spending by an equal amount. d. A tax change alters disposable income and consumption spending.

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