Author Question: Which of these is an example of rational inattention? A) submitting a paper with a few typos, ... (Read 214 times)

laurencescou · **on:** Jun 30, 2018

Which of these is an example of rational inattention?

A) submitting a paper with a few typos, knowing that they won't affect the grade
B) sleeping in later than you had intended
C) a firm delaying price changes to avoid losing customers
D) a firm being unsure of its competitors' prices
E) a firm changing prices so often its customers stop noticing

Question 2

One of the chief advantages of exchange rate pegging is that ________.

A) a country is able to pursue an independent monetary policy over the course of the business cycle
B) it can be an effective means of reducing inflation
C) the currency can be used to promote export growth
D) it allows the monetary authorities to actively respond to the problems of inflation and unemployment