Multiple Choice
One key implication of rational expectations is that
A) anticipated monetary policy has no effect on the price level.
B) anticipated monetary policy cannot affect 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.
Correct Answer:
Verified
Correct Answer:
Verified
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