The rational expectations hypothesis states that
A) individuals always behave irrationally.
B) prices do not adjust in a downward direction.
C) people incorporate past and present economic information into decision making.
D) consumers do not understand the effects of monetary and fiscal policy.
Correct Answer:
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Q183: Fully anticipated monetary policy actions cannot alter
Q184: Under the assumption of rational expectations, real
Q185: According to the real business cycle theory,
Q186: Under the assumption of rational expectations, people's
Q187: According to the real business cycle theory,
Q189: The idea that anticipated monetary policy changes
Q190: Suppose the economy is in equilibrium when
Q191: Which statement is TRUE when rational expectations
Q192: If people do NOT always make the
Q193: According to the real-business-cycle perspective
A) the economy
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