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

Author Question: The theorists of the rational expectations school: a. favor monetary rules because they believe ... (Read 47 times)

tatyanajohnson

  • Hero Member
  • *****
  • Posts: 569
on: Jun 30, 2018
The theorists of the rational expectations school:
 a. favor monetary rules because they believe individuals know too little about how the economy works.
 b. favor monetary rules so that workers and firms do not get any unanticipated surprises from the Fed.
 c. are those who favor an active approach to policy and reject monetary rules.
 d. oppose any monetary rules because they believe rules impede the natural self-correcting mechanism of the economy.
  e. do not believe in implementing discretionary policies.

Question 2

According to the rational expectations school, a correctly anticipated expansionary monetary policy will:
 a. increase prices and real output.
 b. increase real output only in the short run.
  c. have no effect on prices or real output.
  d. decrease prices and real output.
 e. lead only to a higher price level.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

succesfull

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

e


tatyanajohnson

  • Member
  • Posts: 569
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

carojassy25

  • Member
  • Posts: 299
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Old School Biology-Forums Banner Old School Biology-Forums Banner
In 1879 an army officer founded the Carlisle School in Pennsylvania to “civilize” young Indians. The In 1879 an army officer founded the Carlisle School in Pennsylvania to “civilize” young Indians. The
Raphael's mural, The School of Athens, depicts the early Greek philosophers engaged in ... Raphael's mural, The School of Athens, depicts the early Greek philosophers engaged in ...
School-age children enjoy classifying objects School-age children enjoy classifying objects
Japanese cultural Display Rules Japanese cultural Display Rules
5. Social contract theorists believe that the social contract is/was a historical fact. ... 5. Social contract theorists believe that the social contract is/was a historical fact. ...
Video: Factors that affect conduction rates (myelination, axon diameter & temperature)

For a complete list of videos, visit our video library