Which of the Following Is NOT an Inference of the Rational

question 321

Multiple Choice

Which of the following is NOT an inference of the rational expectations hypothesis?

• A) Government policy actions have no real effects in the short run unless the actions are unanticipated.
• B) Government policy actions have no real effects in the long run.
• C) Government policy actions that are anticipated have no real effects in the short run.
• D) Government policy actions that are unanticipated have no monetary effects in the short run.

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Definitions:

Marine Fish Species

Aquatic species that live predominantly in oceanic and sea environments.

Coastal Waters

The part of the ocean adjacent to the coast, within a certain distance, often characterized by shallow depths and significant influence from land.

Tragedy Of The Commons

A situation where individuals, acting independently according to their own self-interest, deplete or spoil shared resources, leading to long-term collective loss.

Overfishing

The practice of harvesting fish from bodies of water at a faster rate than they can reproduce, leading to population declines.