If the Public Has Rational Expectations

question 89

Multiple Choice

If the public has rational expectations,

• A) the only effective policy would be one that is implemented by surprise.
• B) if the public incorrectly anticipates a given policy,there could be adverse results.
• C) if policymakers do not do what they say they are going to do,then there could be adverse results.
• D) a,b,and c
• E) none of the above

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