Expectations about the future will always be accurate if formed ...

[stephzh]

Expectations about the future will always be accurate if formed under ________.
 
  A) rational expectations
  B) adaptive expectations
  C) natural selection
  D) none of the above

Question 2

According to the Fisher effect, an increase in expected inflation results in:
 
  A) lower nominal interest rates
  B) higher nominal interest rates
  C) lower real interest rates
  D) higher real interest rates

[gasdhashg]

Answer to Question 1

D

Answer to Question 2

B

[stephzh]

Excellent

[atrochim]

Thanks for the timely response, appreciate it