The Notion That Expectations Can Significantly Influence Macroeconomic Activity

question 41

Multiple Choice

The notion that expectations can significantly influence macroeconomic activity

• A) is an innovation of the rational expectations theorists.
• B) is true, but only in the context of random, uncontrollable effects.
• C) was introduced as a systematic influence that could be exploited by policy as early as the 1930s by Keynes.
• D) is inconsistent with the core of practical macroeconomics.
• E) none of the above.

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