Before the Development of Expectations Theory

question 78

Multiple Choice

Before the development of expectations theory,

• A) monetary policy prescriptions were strictly passive.
• B) monetary policy had no real effects in the short run.
• C) monetary policy prescriptions were strictly activist.
• D) monetary policy only had real effects in the long run.
• E) economists did not understand the idea of sticky prices.

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Definitions:

Probate

The legal process through which a deceased person's estate is properly distributed to heirs and designated beneficiaries and any debt owed to creditors is paid off.

Constructive Trust

A legal remedy imposed to address unjust enrichment, where property is held by someone who should not profit from it.

Incorporated by Reference

A method in legal documents where the contents of an external document are made a part of the main document by mentioning it explicitly.

Testator

An individual who has made a will or testament to dictate the distribution of their assets after their death.