If Rational Expectations Theory Is Correct,the Fed's Announced Policies Will

question 263

Multiple Choice

If rational expectations theory is correct,the Fed's announced policies will be:

• A) effective in both the long run and the short run.
• B) effective in the short run only.
• C) ineffective in the short run but effective in the long run.
• D) ineffective in both the short run and the long run.