Adaptive expectations assumes that individuals
A) can accurately predict the future.
B) base predictions on random events (i.e., animal spirits) .
C) form their predictions of macroeconomic variables randomly.
D) use all available information in predicting the future.
E) none of the above
Correct Answer:
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Q21: Rational expectations assumes that individuals
A)can accurately predict
Q22: Assume individuals consider only the short-run effects
Q23: A reduction in which of the following
Q24: The IS curve becomes steeper when
A)government spending
Q25: Suppose the Fed increases the money supply
Q27: A change in which of the following
Q28: Which of the following would be a
Q29: Suppose the central bank reduces the money
Q30: An increase in which of the following
Q31: Assume that the current demand for goods
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