Which of the Following Is NOT an Inference of the Rational

question 321

Multiple Choice

Which of the following is NOT an inference of the rational expectations hypothesis?

• A) Government policy actions have no real effects in the short run unless the actions are unanticipated.
• B) Government policy actions have no real effects in the long run.
• C) Government policy actions that are anticipated have no real effects in the short run.
• D) Government policy actions that are unanticipated have no monetary effects in the short run.

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Definitions:

Semantic Memories

A type of long-term memory involving the capacity to recall words, concepts, or numbers, which is essential for the use and understanding of language.

Study New Subjects

The act of learning about disciplines or areas of knowledge that are novel to the learner.

Slave Factories

Historical trading posts along the African coast where enslaved people were held before being transported across the Atlantic Ocean during the transatlantic slave trade.

Elmina

A town in Ghana known for its historic Elmina Castle, a major trading post during the transatlantic slave trade era.