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Which of the Following Is NOT an Inference of the Rational

Question 321

Multiple Choice

Which of the following is NOT an inference of the rational expectations hypothesis?


A) Government policy actions have no real effects in the short run unless the actions are unanticipated.
B) Government policy actions have no real effects in the long run.
C) Government policy actions that are anticipated have no real effects in the short run.
D) Government policy actions that are unanticipated have no monetary effects in the short run.

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