One Major Conclusion of the Rational Expectations Theory Is That

question 8

Multiple Choice

One major conclusion of the rational expectations theory is that

• A) macroeconomic policy can be used to fine-tune the economy.
• B) macroeconomic policy has no impact on GDP, even in the short run.
• C) consumers do not always make rational decisions.
• D) citizens cannot rationally expect the government to pursue the proper economic policy.

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