Multiple Choice
The theorists of the rational expectations school:
A) favor monetary rules because they believe individuals know too little about how the economy works.
B) favor monetary rules so that workers and firms do not get any unanticipated surprises from the Fed.
C) are those who favor an "active approach" to policy and reject monetary rules.
D) oppose any monetary rules because they believe rules impede the natural self-correcting mechanism of the economy.
E) do not believe in implementing discretionary policies.
Correct Answer:
Verified
Correct Answer:
Verified
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