The rational expectations hypothesis implies that discretionary macropolicy may be

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The rational expectations hypothesis suggests that people have rational expectations about the future and take them into account when making decisions. This means that if the government tries to use discretionary macroeconomic policies to influence the economy, people will adjust their behavior accordingly, making the policy relatively ineffective in the short run. However, it does not necessarily mean that such policies will be completely ineffective in the long run, as the effects of the policy may become more apparent over time.

The Rational Expectations Hypothesis Implies That Discretionary Macropolicy May Be