According to the Rational Expectations Hypothesis,monetary Policy Can Have an Effect

question 5

Multiple Choice

According to the rational expectations hypothesis,monetary policy can have an effect on real world variable (such as GDP) in the short run

• A)only when the policy is anticipated.
• B)only when the policy is unsystematic and unanticipated.
• C)regardless of whether the policy is anticipated or unanticipated.
• D)when the Bank of Canada operates as expected in either buying or selling bonds.

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