Those of the Rational Expectations School

Multiple Choice

Those of the rational expectations school

A) favor monetary rules because they believe we know too little about how the economy works
B) favor monetary rules so that workers and firms do not get any unanticipated surprises from the Fed
C) are those who favor an "active approach" to policy and therefore reject monetary rules
D) oppose any monetary rules because they believe rules impede the natural self-correcting mechanism of the economy
E) neither oppose nor favor monetary rules