Question: Indicate whether the following statement is true or false. Provide at least three sentences of Explanations or calculation to support your answer. 1.According to the

Indicate whether the following statement is true or false. Provide at least three sentences of Explanations or calculation to support your answer. 1.According to the theory of rational expectations, higher inflationary expectations encourage businesses and households to increase their demand for loanable funds in order to borrow and make planned expenditures increase. a.True b.False Explanation

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