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    Exam 5: Understanding Interest Rates, Savings, and the Wealth Effect
  5. Question
    The Rational Expectations View Suggests That New Information Made Available
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The Rational Expectations View Suggests That New Information Made Available

Question 47

Question 47

True/False

The rational expectations view suggests that new information made available to market investors will tend to cause interest rates to fall temporarily below their equilibrium values, but rates will rapidly move back toward equilibrium.

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