Proponents of Rational Expectations Argued That the Sacrifice Ratio

Multiple Choice

Proponents of rational expectations argued that the sacrifice ratio

A) could be high because it was rational for people not to immediately change their expectations.
B) could be high because people might adjust their expectations quickly if they found anti-inflation policy credible.
C) could be low because it was rational for people not to immediately change their expectations.
D) could be low because people might adjust their expectations quickly if they found anti-inflation policy credible.