Why do economists who believe people form rational expectations have little faith that announced changes in monetary

Question:

Why do economists who believe people form rational expectations have little faith that announced changes in monetary policy will have substantial effects on real output?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

See More Books

Question Posted: Feb 07, 2013 05:57 AM

See More Questions

Why do economists believe short-run marginal cost curves have positive slopes? Why does this belief lead to the notion that short-run supply curves have positive slopes? What kind of signal does a...
Economists believe that the natural rate of unemployment changes over time, although they often have difficulty pinning down an exact estimate. Policymakers need to have an accurate assessment of the...
Why do some economists believe that better inventory control software may help to reduce the frequency and severity of recessions? Could differences in technology explain why recessions appear to be...
A manufacturer claims that the average tensile strength of thread A exceeds the average tensile strength of thread B by at least 12 kilograms. To test his claim, 50 pieces of each type of thread are...
Complete and balance the following equations: (a) K(s) 1 H2O(l) (b) NaH(s) 1 H2O(l) (c) Na(s) 1 O2(g) (d) K(s) 1 O2(g)
Solve the initial value problem for the RLC circuit in Fig. 61 with the given data, assuming zero initial current and charge. Graph or sketch the solution. Show the details of your work. R = 18 , L =...
What is the difference between the $t$ distribution and the normal distribution?
Variable price and usage variances and fixed manufacturing overhead cost variances Kemp Tables, Inc. (KTI), makes picnic tables of 2 3 4 planks of treated pine. It sells the tables to large retail...
In your personal and professional life, you will use math for many reasons.Discuss the following with your classmates:Pick three concepts you learned this week and explain why they are important for...
On 30 November, a finishing machine was sold. Its capital cost was $25,000 and accumulated depreciation was $13,000 at date of sale. The machine was sold on credit to Jake Strong for $14,300...
How would each of the following likely affect long-run and/or short-run aggregate supply and employment in the macro-economy? a. An increase in the productivity of the labor force due to increased...
Does stagflation contradict the theory of the Phillips curve?
Financial information for American Eagle is presented in Appendix A at the end of the book, and financial information for Buckle is presented in Appendix B at the end of the book. Required: 1....
How would your investment decision change if the revised future inflation numbers for Mexico, provided by Groupe Ariels economist, is the same as that of France? Explain Exhibit 2 Comparison of...
Upon the determination of the exact amount of tax payable for the Company, Mr. Chow instructed the Company's Finance Department to prepare a Company check from its RCBC checking account. The check...
Q2. 50% of Sales is in cash, 25% collected in 1 month and 25% collected in 2 months. 60% of material purchases are paid in cash, and 40% are paid in 1 month. The company has $10000 surplus cash at...
Bellcamp's Juice's Inc. manufacturers and sells apple and orange juice. Product line data for 2019-2021 are shown below. Apple Juice Gallons (in thousands) Price ($s/gallon) Variable Cost (S/gallon)...
Centilux Corporation currently receives all customer payments at its headquarters and then send all those checks to its bank for processing. This policy leads to an 8-day payment processing cycle....
Draw the Lewis structure and calculate the energy needed to break all of the bonds in 1 mol of CH 3 NH 2 .
Federated Shipping, a competing overnight delivery service, informs the customer in Problem 65 that they would ship the 5-pound package for $29.95 and the 20-pound package for $59.20. (A) If...
A piston-cylinder assembly contains 0.5 kg of water at 50C and 500 kPa. It is then isobarically heated until all the water is vaporized. What is the fi nal temperature and volume?
How might restrictions on private financial account transactions alter the problem of attaining internal and external balance with a fixed exchange rate? What costs might such restrictions involve?
In 1961, Germany faced the dilemma of an external surplus and a booming economy. As a result, speculative capital flowed into Germany and the Germans felt obliged to revalue their currency (rather...
You are an economic adviser to the government of China in 2008. The country has a current account surplus and is facing gathering inflationary pressures. a. Show the location of the Chinese economy...
what ways do individuals navigate and negotiate their identities within the complex matrix of socialization processes, considering factors such as ethnicity, gender, and socioeconomic status ?
Discuss in three paragraphs how a bank can decrease its labor expense to to improve its risk/return profile. give correct answer with explanation in long.
discuss the concept of resocialization and its significance in situations where individuals undergo significant life transitions or experiences that challenge their existing social identities and...

Why do economists who believe people form rational expectations have little faith that announced changes in monetary

Question:

Step by Step Answer:

Rational expectations theorists believe that when poli...View the full answer

Exploring Economics

Students also viewed these Economics questions