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If a nation begins to export a good,
Rational Expectations
Rational expectations is an economic theory that assumes individuals form forecasts about the future based on all available information, thereby influencing economic outcomes.
Active Policy
Economic strategies and measures actively implemented by governments to influence the economy, such as fiscal and monetary policies.
Rational Expectations
An economic theory suggesting individuals make predictions about the future based on available information and past experience, influencing their economic decisions.
Monetary Policy
The process by which a government, central bank, or monetary authority manages the supply of money and interest rates to achieve macroeconomic objectives.
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