The Rational Expectations Hypothesis Implies That Use of Discretionary Macro-Policy

question 160

Multiple Choice

The rational expectations hypothesis implies that use of discretionary macro-policy as a stabilization tool will

• A) be ineffective, even in the short run.
• B) be effective in the short run but ineffective in the long run.
• C) be effective both in the short run and long run.
• D) make it possible to trade-off a higher rate of inflation for a lower rate of unemployment.

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Definitions:

Blended Family

A family unit consisting of a couple and their children from this and all previous relationships.

Simple Step-Family

A familial setup where one of the adults has children from a previous relationship, but the couple has no mutual children.

Complex Step-Family

A family structure where one or both partners have children from previous relationships, leading to a blend of parents and children with varied relationships.

Multigenerational Family

A family living arrangement where more than two generations live under the same roof or closely together.