According to the new classical theory, economic policies are
A) effective only if anticipated.
B) ineffective if unanticipated.
C) ineffective if anticipated.
D) ineffective, whether anticipated or unanticipated.

Question

Quizplus · Accepted Answer

According to the new classical theory, anticipated economic policies are ineffective because individuals adjust their expectations and behaviors in response to the anticipated policy, neutralizing its effects.

According to the New Classical Theory, Economic Policies Are