The Main Policy Conclusion of the Rational Expectations School Is

question 22

Multiple Choice

The main policy conclusion of the rational expectations school is

• A)fiscal policy lags are so long and variable that such policy is worthless,but monetary policy can be helpful
• B)monetary policy lags are so long and variable that such policy is worthless,but fiscal policy can be helpful
• C)both monetary and fiscal policy can be helpful if policy makers correctly anticipate the plans of firms and households
• D)both monetary and fiscal policy can be helpful if firms and households correctly anticipate the plans of policy makers
• E)neither monetary nor fiscal policy can be helpful if firms and households correctly anticipate the plans of policy makers

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Definitions:

Contemporary Managers

Modern-day leaders who are responsible for planning, directing, and overseeing operations within an organization.

Henri Fayol

A French mining engineer and management theorist known for developing a general theory of business administration and for his 14 Principles of Management.

Mary Parker Follett

A pioneering theorist in the field of organizational behavior and management, who emphasized the importance of democratic leadership and people-centric management practices.

Classical Theorists

Scholars and thinkers who have contributed to the foundation of classical theories in various fields, focusing on formal structures and systems.