The Macroeconomic Theory That Because Workers and Firms Take All

question 22

Multiple Choice

The macroeconomic theory that because workers and firms take all information into account, only unexpected changes in the money supply affect aggregate output is called _____ theory.

• A)real business cycle
• B)rational expectations
• C)new classical
• D)supply-side

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Definitions:

Physical Delivery

Refers to the actual transfer of the underlying asset rather than a cash settlement in futures and options trading.

Sale On Approval

A conditional sale that is to become final only in case the buyer, after a trial, approves or is satisfied with the article sold.

Risk Of Loss

The responsibility for the financial impact of damage, destruction, or disappearance of goods or property, assigned by law or by contract.

F.O.B. Boston

A term indicating that the seller is responsible for goods transportation and risk until the goods are loaded onto a ship in Boston.