One Key Implication of Rational Expectations Is That

question 137

Multiple Choice

One key implication of rational expectations is that

• A)anticipated monetary policy has no effect on the rate of unemployment or the level of real GDP.
• B)anticipated monetary policy can affect the rate of unemployment but not the level of real GDP.
• C)unanticipated monetary policy has no effect on the economy but anticipated monetary policy does have an effect on the economy.
• D)both unanticipated monetary policy and anticipated monetary policy have an effect on the economy.

---

Definitions:

E-Mail

A method of exchanging messages between people using electronic devices.

Top-Level Business Executives

Top-level business executives are high-ranking officials within a company, responsible for strategic decision-making and leading the organization towards its goals.

Business E-Mail

Electronic mail used for business communications, characterized by a professional tone and format.

Greeting

A polite word or sign of welcome or recognition addressed to someone on meeting.