The Idea of Rational Expectations Suggests That

question 81

Multiple Choice

The idea of rational expectations suggests that

• A)Only economic policies that people can anticipate are effective.
• B)It is unrealistic for Congress to balance the federal budget during a recession.
• C)Discretionary policies and fine-tuning can move the economy to full employment.
• D)Economic policies are ineffective if the policies are anticipateD.Any policy that is properly anticipated will be less effective and maybe not effective at all.

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Definitions:

Ownership and Control

The legal rights to possess, use, and manage assets or property, and the ability to direct the operations and activities of an entity or resource.

Limited Liability

A legal structure that limits the financial liability of investors or owners to the amount they have invested in a company, protecting personal assets.

Transferability of Ownership

The capability to legally transfer the title or ownership of an asset or property from one entity to another.

Sole Proprietorship

A business structure in which a single individual owns and operates the business, bearing sole responsibility for its debts and obligations.