The notion that expectations can significantly influence macroeconomic activity
A) is an innovation of the rational expectations theorists.
B) is true, but only in the context of random, uncontrollable effects.
C) was introduced as a systematic influence that could be exploited by policy as early as the 1930s by Keynes.
D) is inconsistent with the core of practical macroeconomics.
E) none of the above.
Correct Answer:
Verified
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