Unlike Keynesian macroeconomics, rational expectations theory assumes consumers will adjustMultiple choice question.over time.immediately. after government interventions take place.never.

Monetarism assumes that consumers will adjust to market changesMultiple choice question.will not occur, while rational expectations theory assumes the changes will occur over time.over time, while rational expectations theory assumes the changes will never occur.immediately, while rational expectations theory assumes the changes will occur over time.over time, while rational expectations theory assumes the changes will occur immediately.

In comparing rational expectations theory to Keynesian macroeconomics, rational expectations theory is seen as moreMultiple choice question.unrealistic and Keynesian economics is seen as more contemporary.dynamic and Keynesian economics is seen as more static.government focused and Keynesian economics is seen as more monetary focused.simplistic and Keynesian economics is seen as more complex.

One key principle of monetarism isMultiple choice question.static expectations.minor expectations.rational expectations.adaptive expectations.

The idea that people assess all the information available to them, immediately update their expectations, and change their behavior as needed is known asMultiple choice question.adaptive expectations.static expectations.minor expectations.rational expectations.

The idea that people do not incorporate new information into their expectations is known asMultiple choice question.static expectations.minor expectations.rational expectations.adaptive expectations.