Those who believe in the rational expectations hypothesis advocate ________ policy intervention.
A) continual
B) sporadic
C) limited
D) no

Question

Quizplus · Accepted Answer

Those who believe in the rational expectations hypothesis argue that monetary or fiscal policy intervention is unnecessary or even harmful as individuals in the economy will adjust their behavior accordingly based on their rational expectations of future conditions.

Those Who Believe in the Rational Expectations Hypothesis Advocate ________