According to a Theory That Relies on the Rational Expectations

question 270

Multiple Choice

According to a theory that relies on the rational expectations hypothesis and the assumption that wages and prices are flexible, why do anticipated expansionary monetary actions NOT boost real GDP?

• A) Anticipated expansionary monetary policy actions do not increase aggregate demand.
• B) The short-run aggregate supply curve shifts upward simultaneously with the rightward shift of aggregate demand.
• C) The short-run aggregate supply curve shifts downward simultaneously with the upward shift of aggregate demand.
• D) The higher interest rates associated with anticipated expansionary monetary policy actions will dampen investment spending.

Analyze and apply the criteria for determining the enforceability of liquidated damages provisions.

Examine the enforcement of contract provisions limiting consequential damages, with a focus on consumer goods.

Identify the remedies available to sellers and buyers under the Uniform Commercial Code (UCC) when a contract breach occurs.

Understand the statutes of limitation for contracts for the sale of goods under the UCC.