The Main Policy Conclusion of the Rational Expectations School Is

question 148

Multiple Choice

The main policy conclusion of the rational expectations school is that:

• A)fiscal policy lags are so long and variable that such policy is worthless,but monetary policy can be helpful.
• B)monetary policy lags are so long and variable that such policy is worthless,but fiscal policy can be helpful.
• C)both monetary and fiscal policy can be helpful if policy makers correctly anticipate the plans of firms and households.
• D)both monetary and fiscal policy can be helpful if firms and households correctly anticipate the plans of policy makers.
• E)neither monetary nor fiscal policy can be helpful if firms and households correctly anticipate the plans of policy makers.

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Definitions:

Genes And Environment

The interplay between genetic predispositions and environmental factors that influence the development and behavior of organisms.

Different Genes

Relates to the genetic variation among individuals that contributes to their unique characteristics and predispositions.

Different Environments

Various physical or social settings in which individuals live, work, and interact.

Genotype

The genetic constitution of an individual organism, consisting of the specific allele makeup inherited from its parents.