The Rational Expectations Hypothesis Implies That Discretionary Macropolicy May Be

question 133

Multiple Choice

The rational expectations hypothesis implies that discretionary macropolicy may be

• A)relatively ineffective,even in the short run.
• B)relatively effective in the short run but ineffective in the long run.
• C)effective both in the short run and long run.
• D)effective in the long run because decision makers will continually make systematic,predictable errors.

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The level of competence, caution, and attention expected of an individual in a specific situation, often used in legal contexts concerning negligence.

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