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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Definitions:

Achievement Motivation

The need, or desire, to attain a certain standard of excellence.

Achievement Motivation

The drive that propels individuals to strive for success, mastery, and to overcome obstacles.

Delayed Gratification

The skill to avoid succumbing to immediate pleasure, opting instead for a delayed but potentially greater reward.

Snake Wine

A traditional beverage in some Asian cultures, made by infusing whole snakes in rice wine or grain alcohol, believed to have healing properties.