According to the rational expectation view, the government can ...

[khang]

According to the rational expectation view, the government can change real output:
 a. with appropriate, well-publicized fiscal and monetary policies.
 b. with appropriate, well-publicized fiscal and monetary policies in the short run, but not in the long run.
  c. only by making unexpected changes in aggregate demand.
 d. without ever affecting the price level.

Question 2

Which of the following is one of the main reasons why China has recently received large amounts of foreign direct investment?
 a. The prospect that multinational firms have of selling to the massive Chinese market
  b. The lack of environmental standards under the communist government of China
  c. The prospect of using forced child labor for cheaper production in this country
  d. The relative strength of the Chinese currency, which makes any investment there worthwhile
  e. The advanced southeast Asian highway system, which makes transportation extremely efficient

[prumorgan]

Answer to Question 1

c

Answer to Question 2

a

[khang]

Thank you

[prumorgan]

Happy to help you