According to the Rational Expectations View

Multiple Choice

According to the rational expectations view:

A) the economy will never deviate from the natural rate of unemployment for any anticipated policy.
B) the long-run inflation rate is equal to zero.
C) expected inflation is always less than actual inflation.
D) people use only past information to form expectations about future inflation rates.
E) announced money-growth policies are quite effective in reducing unemployment below its natural rate.