Monetarists and Rational Expectations Theorists Generally Agree That

question 8

Multiple Choice

Monetarists and rational expectations theorists generally agree that:

• A) the Federal Reserve should adhere to a monetary rule.
• B) the rate of interest and the price of bonds are positively or directly related.
• C) the money supply cannot be measured and therefore cannot be controlled by the Federal Reserve.
• D) prices and wages are inflexible downward.

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