According to the Rational Expectations Hypothesis, Monetary Policy Can Have

question 245

Multiple Choice

According to the rational expectations hypothesis, monetary policy can have real effects on such variables as real Gross Domestic Product (GDP) in the short run

• A)only when the policy is anticipated.
• B)only when the policy is unsystematic and unanticipated.
• C)regardless of whether the policy is anticipated or unanticipated.
• D)when the Federal Reserve's open market committee operates as expected in either buying or selling bonds.

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