Proponents of Rational Expectations Argued That the Sacrifice Ratio

question 172

Multiple Choice

Proponents of rational expectations argued that the sacrifice ratio

• A)could be high because it was rational for people not to immediately change their expectations.
• B)could be high because people might adjust their expectations quickly if they found anti-inflation policy credible.
• C)could be low because it was rational for people not to immediately change their expectations.
• D)could be low because people might adjust their expectations quickly if they found anti-inflation policy credible.

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Definitions:

Implicit Memory

Unconscious retention in memory, as evidenced by the effect of a previous experience or previously encountered information on current thoughts or actions.

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, or numbers, which is essential for the understanding and use of language.

Explicit Memory

Conscious, intentional recollection of an event or of an item of information.

Intentional Recollection

The deliberate effort to retrieve memories or information from one's past.