Advanced Placement (AP), 04.03.2021 01:00 chloebaby8
AP Macroeconomics
Which of the following is consistent with advocates of rational expectations? If consumers fully anticipate an increase in interest rates, then
A. real GDP will increase by the value of the multiplier.
B. real GDP will decrease by the value of the multiplier.
C. real GDP will not change.
D. price level will increase.
E. unemployment will increase.
Answers: 3
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AP Macroeconomics
Which of the following is consistent with advocates of rational expectations? If...
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