Business, 26.11.2019 03:31 zafarm2oxgpmx

Which of the following accurately explain the impact of an unexpected shift to a more expansionary monetary policy under rational and adaptive expectations? check all that apply.
a. under the adaptive expectations hypothesis, people will integrate the shift to the more expansionary monetary policy into their forecast of the future inflation rate.
b. under the rational expectations hypothesis, people will not change their expectations until there is an actual increase in the rate of inflation.
c. under the adaptive expectations hypothesis, people will not change their expectations until there is an actual increase in the rate of inflation.
d. under the rational expectations hypothesis, people will integrate the shift to the more expansionary monetary policy into their forecast of the future inflation rate.

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Which of the following accurately explain the impact of an unexpected shift to a more expansionary m...

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