Lucas Argues That When Policies Change,expectations Will Change Thereby

question 22

Multiple Choice

Lucas argues that when policies change,expectations will change thereby

• A)changing the relationships in econometric models.
• B)causing the government to abandon its discretionary stance.
• C)forcing the Fed to keep its deliberations secret.
• D)making it easier to predict the effects of policy changes.

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Definitions:

Atlantic Ocean

The second-largest body of water in the world, separating the continents of Europe and Africa on the east from the Americas on the west.

Theodore Roosevelt

The 26th President of the United States (1901-1909) known for his exuberant personality, range of interests and achievements, as well as his leadership of the Progressive Movement and conservation efforts.

American Neutrality

Refers to the policy of the United States to avoid taking sides or becoming involved in foreign conflicts or wars, particularly noted during the early parts of World Wars.

Samuel Gompers

An English-born American labor union leader who founded the American Federation of Labor and served as the organization's president.