Under a market system, the people with information about buyers' ...

[LCritchfi]

Under a market system, the people with information about buyers' desires, production technology and resources make the decisions.
 
  Indicate whether the statement is true or false

Question 2

Under the rational expectations hypothesis, if wages adjust rapidly to new information about intended policy actions, monetary policy can have an effect
 
  A) in the long run, but not the short run.
  B) only in the short run and only if the policy is unanticipated.
  C) in both the short and the long run.
  D) only in the long run and only if the policy is fully anticipated.

[akudia]

Answer to Question 1

TRUE

Answer to Question 2

B