Multiple Choice
Brandon, an economist, is a believer of the rational expectations school. According to him, which of the following is likely to affect the levels of output and employment in an economy?
A) an expansionary monetary policy, if it is fully anticipated
B) a recessionary monetary policy, if it is fully anticipated
C) a monetary policy that is unanticipated
D) a fiscal policy that is anticipated
E) the Fed's announcement of no change in monetary policy
Correct Answer:
Verified
Correct Answer:
Verified
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