The Rational Expectations Hypothesis Implies That Discretionary Macropolicy May Be

Multiple Choice

The rational expectations hypothesis implies that discretionary macropolicy may be

A) relatively effective in both the short run and long run.
B) relatively effective in the short run but ineffective in the long run.
C) relatively ineffective both in the short run and long run.
D) effective in the long run since decision makers will continually make predictable, systematic errors.