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If the Public Has Rational Expectations

Question 54

Multiple Choice

If the public has rational expectations,


A) the only effective policy would be one that is implemented by surprise.
B) if the public incorrectly anticipates a given policy,there could be adverse results.
C) if policymakers do not do what they say they are going to do,then there could be adverse results.
D) a,b,and c
E) none of the above

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