Which of the following groups believes that government policy is undermined by people's incorporation of the anticipated consequences of the policy into their present decisions?
A) monetarist school
B) Keynesian school
C) supply-side school
D) rational expectations school

Question

Quizplus · Accepted Answer

The rational expectations school believes that people incorporate the anticipated consequences of government policy into their present decisions, hence undermining the effectiveness of the policy.

Which of the Following Groups Believes That Government Policy Is