The Theory of Rational Expectations Concludes That

question 52

Multiple Choice

The theory of rational expectations concludes that

• A)the public's expectations can influence the outcome of monetary policy,but not of fiscal policy.
• B)the public's expectations can influence the outcome of fiscal policy,but not of monetary policy.
• C)the public's expectations as to the effects of economic policies will tend to reinforce the effectiveness of those policies.
• D)by reacting in its self-interest to the expected effects of stabilization policy,the public will tend to negate the impact of those policies.

---

Definitions:

Maple Tree

A type of tree known for its distinctive leaf shape, sap which can be made into syrup, and vibrant fall coloration.

Surface Area

The total area of the exterior surface of a three-dimensional object.

Huntington Disease

A genetic disorder causing the breakdown of nerve cells in the brain, leading to physical and mental deterioration.

Autosomal Dominant Disorder

An autosomal dominant disorder is a type of genetic disorder where a single copy of the mutated gene, inherited from one parent, is sufficient to cause disease, affecting both sexes equally and often present in every generation.