The Theory of Rational Expectations Concludes That

question 160

Multiple Choice

The theory of rational expectations concludes that

• A)discretionary policies are more effective than rules in stabilizing the economy.
• B)discretionary fiscal policy is a more powerful stabilization device than is discretionary monetary policy.
• C)discretionary monetary policy is a more powerful stabilization device than is discretionary fiscal policy.
• D)since expectations can leave discretionary stabilization policies ineffective,it is better to rely upon policy rules.

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Definitions:

Organizational Citizenship

Involves voluntary behaviors exhibited by employees that are not part of their formal job requirements but that contribute positively to the organization.

Cultural Differences

The variations in the norms, values, beliefs, and practices that exist among people from different backgrounds and societies.

Achievement Orientation

Concentration on establishing and achieving superior performance levels.

Collectivist

Pertaining to a cultural orientation that emphasizes the needs, goals, and views of the group over those of the individual.