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Author Question: All available information in the definition of rational expectations means that a. agents use all ... (Read 70 times)

Bob-Dole

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on: Jun 30, 2018
All available information in the definition of rational expectations means that
 
  a. agents use all possible information that could be out there.
  b. agents use all possible public information that could be out there.
  c. agents use all information that is relevant.
  d. agents use all information that is available in which the marginal benefits of the information are greater than the marginal costs of gathering the information.

Question 2

Time inconsistency is a problem when policymakers
 
  a. have no flexibility in setting policy.
  b. follow inflexible rules.
  c. have discretion in their policy responses to changes in economic conditions.
  d. does not follow the Taylor rule.
  e. none of the above.


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fatboyy09

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

B


Bob-Dole

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

lkanara2

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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