Federal Reserve chairman Ben Bernanke's move toward greater openness in the 2010s reflected which view of macroeconomics?
A) Expectations do not matter.
B) Expectations matter,whether adaptive or rational.
C) Only rational expectations matter.
D) Monetary policy should be passive.
E) Monetary policy should be active.

Question

Quizplus · Accepted Answer

Bernanke's move toward greater openness reflected the view that expectations matter in macroeconomics, whether adaptive or rational. He was a proponent of the use of forward guidance and communicating the Fed's policy plans to the public in order to shape their expectations and influence their behavior.

Federal Reserve Chairman Ben Bernanke's Move Toward Greater Openness in the 2010s