Which of the Following Individuals Was Responsible for Introducing Rational

question 45

Multiple Choice

Which of the following individuals was responsible for introducing rational expectations into macroeconomic models?

• A) Lucas.
• B) Phillips.
• C) Tobin.
• D) Solow.
• E) Keynes.

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Definitions:

Market Yield

The current annual income return of an investment divided by the present market price.

Zero-Coupon Bonds

Bonds that do not pay periodic interest payments and are sold at a discount from their face value.

Market Price

The current price at which an asset or service can be bought or sold on the open market.

Coupon Bond

A bond that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date, when the principal amount is repaid.