If the Markets in the Economy Are Characterized by Rational

question 99

Multiple Choice

If the markets in the economy are characterized by rational expectations,then

• A)predictable changes cause neither the AD nor the SAS curves to shift.
• B)predictable changes in monetary policy are ineffective in changing output.
• C)unpredictable monetary policy is ineffective in changing prices.
• D)unpredictable fiscal policy is ineffective in changing prices.

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