Author Question: The idea that economic agents do not make systematic errors because they use all information ... (Read 61 times)

Frost2351 · **on:** Jun 30, 2018

The idea that economic agents do not make systematic errors because they use all information efficiently is called the

A) consistency hypothesis.
B) rational expectations hypothesis.
C) information efficiency hypothesis.
D) principle of maximizing behavior.

Question 2

The money demand curve shifts to the right when

a. there is an increase in the riskiness of interest-bearing assets.
b. there is a decrease in the interest rate.
c. income decreases.
d. income increases.
e. both a and d.