Adaptive expectations assumes that individuals A) can ...

[misspop]

Adaptive expectations assumes that individuals
 
  A) can accurately predict the future.
  B) base predictions on random events (i.e., animal spirits).
  C) form their predictions of macroeconomic variables randomly.
  D) use all available information in predicting the future.
  E) none of the above

Question 2

When x increases
 
  A) IS curve shifts to the left.
  B) IS curve shifts to the right.
  C) LM curve shifts upward.
  D) LM curve shifts downward.

[joechoochoy]

Answer to Question 1

E

Answer to Question 2

A