According to the rational expectations school, when monetary ...

[HCHenry]

According to the rational expectations school, when monetary policy makers do exactly what is expected of them, their efforts to stimulate the economy will have no effect on employment.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

The wage rate considered acceptable to workers engaged in collective bargaining will be determined in part by what monetary policy workers expect in the near future.
 a. True
  b. False
  Indicate whether the statement is true or false

[meganlapinski]

Answer to Question 1

True

Answer to Question 2

True