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Author Question: According to rational expectations theory, which of the following is the best approach to lower the ... (Read 19 times)

luminitza

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on: Jun 30, 2018
According to rational expectations theory, which of the following is the best approach to lower the inflation rate?
 a. Preannounced stable government policies.
  b. Unpredictable government policies.
  c. First predictable and then unpredictable government policies.
  d. None of these.

Question 2

Suppose your nominal income this year is 5 percent higher than last year. If the inflation rate for the period was 3 percent, then your real income was:
 a. increased by 1.67 percent.
  b. increased by 2 percent.
  c. increased by 8 percent.
  d. decreased by 0.6 percent.


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k2629

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Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

b


luminitza

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Reply 2 on: Jun 30, 2018
:D TYSM

bblaney

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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