According to rational expectations theory, discretionary monetary and fiscal policy will be ineffective primarily because of the
A) successes of macroeconomic policymakers
B) inability of policymakers to time decisions properly.
C) reaction of the public to the expected effects of policy changes.
D) slow impact of policy to stimulate changes in real output and employment.
Correct Answer:
Verified
Q163: In the mainstream view, the crowding-out effect
Q165: In 2012, the Fed adopted a flexible
Q169: Which of the following ideas is associated
Q172: To stabilize the economy, monetarists and rational
Q173: With inflation targeting, the Federal Reserve would
Q192: The notion that the annual rate of
Q196: The policy rule recommended by monetarists is
Q202: Mainstream economists contend that a policy rule
Q205: According to rational expectations theory, instantaneous market
Q206: The theory of rational expectations calls for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents