This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: According to rational expectations theory, which of the following is the best approach to lower the ... (Read 59 times)

luminitza

  • Hero Member
  • *****
  • Posts: 555
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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

k2629

  • Sr. Member
  • ****
  • Posts: 357
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

b


luminitza

  • Member
  • Posts: 555
Reply 2 on: Jun 30, 2018
:D TYSM

sailorcrescent

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Juglans nigra (Black Walnut tree) lower leaf surface Juglans nigra (Black Walnut tree) lower leaf surface
Women who are 65 and older have a lower median income from all sources than men in the same age ... Women who are 65 and older have a lower median income from all sources than men in the same age ...
Knead lower leg muscles by bending the knee until the foot is flat on the supporting surface. Reach ... Knead lower leg muscles by bending the knee until the foot is flat on the supporting surface. Reach ...
Inspecting the conjunctiva of the lower lid Inspecting the conjunctiva of the lower lid
Child Development: A Cultural Approach Child Development: A Cultural Approach
My Health: An Outcomes Approach Plus MasteringHealth My Health: An Outcomes Approach Plus MasteringHealth
Video: Introduction to Sleep Apnea

For a complete list of videos, visit our video library