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 52 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
Thanks for the timely response, appreciate it

dreamfighter72

  • Member
  • Posts: 355
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

Your heart beats over 36 million times a year.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

A young Lipizzan at the Spanish Riding School in training equipment, wearing saddle, bridle and long A young Lipizzan at the Spanish Riding School in training equipment, wearing saddle, bridle and long
These school-age childrean are eating a health snack These school-age childrean are eating a health snack
The Nutritional Needs of School-Aged Children Can Be Guided by MyPlate The Nutritional Needs of School-Aged Children Can Be Guided by MyPlate
Cost of Going to School Cost of Going to School
A police record search of 250 incoming Grade 10 at a Secondary School shows that 26 had been ... A police record search of 250 incoming Grade 10 at a Secondary School shows that 26 had been ...
Simple Mathematical Rules Useful in Working Genetics Problems Simple Mathematical Rules Useful in Working Genetics Problems
Video: Fermentation pathways

For a complete list of videos, visit our video library