The Idea of Rational Expectations Suggests That

Multiple Choice

The idea of rational expectations suggests that

A) Only economic policies that people can anticipate are effective.
B) It is unrealistic for Congress to balance the federal budget during a recession.
C) Discretionary policies and fine-tuning can move the economy to full employment.
D) Economic policies are ineffective if the policies are anticipateD.Any policy that is properly anticipated will be less effective and maybe not effective at all.