Author Question: Expectations about the future will always be accurate if formed under ________. A) rational ... (Read 96 times)

stephzh · **on:** Jun 30, 2018

Expectations about the future will always be accurate if formed under ________.

A) rational expectations
B) adaptive expectations
C) natural selection
D) none of the above

Question 2

According to the Fisher effect, an increase in expected inflation results in:

A) lower nominal interest rates
B) higher nominal interest rates
C) lower real interest rates
D) higher real interest rates