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

Author Question: The primary argument against the rational-expectations assumption is that (Read 54 times)

abarnes

  • Hero Member
  • *****
  • Posts: 556
on: Apr 19, 2019

Question 1

The argument in favor of rational expectations is that


◦ people will continue to acquire information as long as the marginal benefit of that information is positive.
◦ individuals have a very good idea of what to expect from the government in terms of monetary policy but not fiscal policy.
◦ it is costless for individuals and firms to form rational expectations.
◦ if expectations were not rational, there would be unexploited profit opportunities available.

Question 2

The primary argument against the rational-expectations assumption is that


◦ the costs of formulating rational expectations are very low.
◦ it requires households and firms to know too much.
◦ it assumes that unexploited opportunities for profit persist in the economy.
◦ people expect certain outcomes from the government's policy actions.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by abarnes on Apr 19, 2019

frejo

  • Sr. Member
  • ****
  • Posts: 349
Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 29% of students answer this correctly


abarnes

  • Hero Member
  • *****
  • Posts: 556
Reply #2 on: Apr 19, 2019
Excellent


frejo

  • Sr. Member
  • ****
  • Posts: 349
Reply #3 on: Apr 19, 2019
Great! Please up vote :D


« previous next »
 

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Primary embryonic membrane development Primary embryonic membrane development
This chart illustrates the bottom up assumption about government. In this, attitudes, culture, and This chart illustrates the bottom up assumption about government. In this, attitudes, culture, and
Primary rainbows are the brightest and most common. Primary rainbows are the brightest and most common.
How to solve equations containing rational exponents greater than 2 How to solve equations containing rational exponents greater than 2
Carbon dioxide: The anthropogenic greenhouse gas of primary concern Carbon dioxide: The anthropogenic greenhouse gas of primary concern
Primary material used for HEADERS Primary material used for HEADERS
Video: Integumentary Anatomy

For a complete list of videos, visit our video library