In the Late 1970s,proponents of Rational Expectations Argued That

question 62

Multiple Choice

In the late 1970s,proponents of rational expectations argued that

• A)the Fed should not attempt to aggressively fight inflation.
• B)the sacrifice ratio was smaller than previously thought.
• C)the short run was relatively long.
• D)None of the above is correct.

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Definitions:

Variable Expenses

Costs that change in proportion to business activity or production volume, such as materials costs, direct labor, and utilities for machinery.

Minimum Required Rate Of Return

The lowest acceptable return on an investment, used as a benchmark for evaluating potential investments.

Average Operating Assets

This refers to the average value of the assets used in operations over a certain period, which can indicate the efficiency of asset use in generating income.

Sales

The revenue generated from the selling of goods or services by a company or an enterprise to its customers.