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According to Rational Expectations Theory, Discretionary Monetary and Fiscal Policy

Question 42

Multiple Choice

According to rational expectations theory, discretionary monetary and fiscal policy will be ineffective primarily because of the:


A) Successes of macroeconomic policy makers
B) Inability of policy makers to time decisions properly
C) Reaction of the public to the expected effects of policy changes
D) Slow impact of policy to stimulate changes in real output and employment

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