One Key Implication of Rational Expectations Is That

Multiple Choice

One key implication of rational expectations is that

A) anticipated monetary policy has no effect on the rate of unemployment or the level of real GDP.
B) anticipated monetary policy can affect the rate of unemployment but not the level of real GDP.
C) unanticipated monetary policy has no effect on the economy but anticipated monetary policy does have an effect on the economy.
D) both unanticipated monetary policy and anticipated monetary policy have an effect on the economy.