Cravens8542 Cravens8542

11-03-2024
Business

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Under rational expectations, government policy can be effective:

1. whenever the economy reacts rationally to the decision.
2. if it is rationally thought out before implementation.
3. if it surprises people when it occurs.
4. if it is announced well in advance.
5. if it is anticipated, so people can make realistic preparations.

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