The rational expectations school advocates _____

Question

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The rational expectations school advocates a passive approach to policy, meaning that markets should be left to self-regulate without government intervention. They believe that individuals and firms make rational decisions based on their expectations of future events, and therefore any attempts at government intervention would be ineffective or even harmful. This approach does not align with any specific economic policy, such as monetarism or Keynesianism, and does not necessarily advocate for the use of monetary or foreign trade policy.

The Rational Expectations School Advocates _____