If Expectations Are Formed Rationally,then

question 22

Multiple Choice

If expectations are formed rationally,then

• A) activist monetary policy may yield no gains whatsoever.
• B) monetary policy has real effects in the long run.
• C) inflation will only hurt lenders and not borrowers.
• D) inflation will only hurt borrowers and not lenders.
• E) individuals expect inflation equal to their most recent experience.

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Definitions:

Family and Medical Leave Act

A U.S. federal law that provides employees with unpaid, job-protected leave for certain family and medical reasons.

Employer Notification

The requirement for employers to inform their employees or governmental bodies about certain workplace changes, health and safety issues, or benefits entitlements.

Implied Contract

A contract created by the actions or gestures of the parties involved in the transaction.

Nondiscriminatory Manner

Acting or making decisions without bias, unfairness, or discrimination towards any individual or group.