Rational Expectations Theory Suggests That Government or Central Bank Policies

question 87

True/False

Rational expectations theory suggests that government or central bank policies designed to change aggregate demand will be effective.

---

Definitions:

Smooth Muscle

A type of muscle tissue found in the walls of hollow organs (such as intestines and blood vessels) that contracts involuntarily, controlled by the autonomic nervous system.

Skeletal Muscle

Skeletal muscle is a type of striated muscle tissue that is attached to bones by tendons and is under voluntary control, enabling movement of the skeleton.

Cardiac Muscle

A specialized form of striated muscle found exclusively in the heart, characterized by its ability to contract involuntarily and rhythmically.

Smooth Muscle

Involuntary muscle found in the walls of internal organs and blood vessels, controlled by the autonomic nervous system.