The Rational Expectations Hypothesis Implies That Discretionary Macropolicy May Be

Multiple Choice

The rational expectations hypothesis implies that discretionary macropolicy may be

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