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 130 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 top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

The calories found in one piece of cherry cheesecake could light a 60-watt light bulb for 1.5 hours.

Where Professional Psychologists Work Primary employment settings for PhD recipients in psychology. Where Professional Psychologists Work Primary employment settings for PhD recipients in psychology.
The primary windings are inside the secondary windings on this General Motors coil. The primary windings are inside the secondary windings on this General Motors coil.
Primary rainbows are the brightest and most common. Primary rainbows are the brightest and most common.
The Four Primary Drug-Receptor Families The Four Primary Drug-Receptor Families
Primary Active Transport Primary Active Transport
Primary material used for HEADERS Primary material used for HEADERS
Video: Interpreting a cladogram Animation

For a complete list of videos, visit our video library