A Shortcoming of the Rational Expectations Hypothesis Is That

question 11

Multiple Choice

A shortcoming of the rational expectations hypothesis is that

• A) it ignores short-term wage stickiness.
• B) people prefer rational ignorance in making decisions.
• C) it ignores the role of saving.
• D) it is inconsistent with the long-run Phillips curve.

Recognize and differentiate between types of hypothetical syllogisms (modus ponens, modus tollens, invalid forms).

Apply logical principles to translate informal statements into formal logical expressions.

Understand the relationship between antecedents and consequents in hypothetical propositions.

Distinguish between necessary and sufficient conditions in propositions.

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