Those who believe in the rational expectations hypothesis advocate
A. active fiscal policy during recessions.
B. active monetary policy during inflationary periods only.
C. no policy intervention.
D. active monetary policy during recessions.
Answer: C
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In the figure above, compared to a perfectly competitive industry with the same costs, a single-price, unregulated monopoly will raise the price by
A) $2.00 per unit. B) $4.00 per unit. C) $6.00 per unit. D) $8.00 per unit.
As long as the debt is internally held, there are no problems associated with the government going into debt
Indicate whether the statement is true or false
If the demand for loanable funds shifts to the right, then the equilibrium interest rate
a. and quantity of loanable funds rises. b. and quantity of loanable funds falls. c. rises and the quantity of loanable funds falls. d. falls and the quantity of loanable funds rises.
A falling interest rate affects the demand for consumer __________ and shifts the AD curve to the __________
A) nondurables; right B) nondurables; left C) durables; right D) durables; left