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Q: Assume that many households and businesses reduce their spending only because they expect other households and consumers to reduce their spending. Also suppose that all households and consumers would
be better off if they did not reduce their spending. This situation best describes the: A.real-business-cycle theory. B.rational expectations theory.C.idea of coordination failures.D.adaptive expectations theory.
A: The answer is B.rational expectations theory.
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Original conversation
User: Checkable deposits are classified as money because: A.they can be readily used in purchasing goods and paying debts. B.banks hold currency equal to the value of their checkable deposits.C.they are ultimately the obligations of the Treasury. D.they earn interest income for the depositor.

User: Assume that many households and businesses reduce their spending only because they expect other households and consumers to reduce their spending. Also suppose that all households and consumers would be better off if they did not reduce their spending. This situation best describes the: A.real-business-cycle theory. B.rational expectations theory.C.idea of coordination failures.D.adaptive expectations theory.

Weegy: The answer is B.rational expectations theory.
Expert answered|bongche|Points 1845|

User: Assume that, under a system of floating exchange rates, Mexicans decide to increase their investments in the United States. As a result: A.the peso and the dollar will both depreciate.B.the peso and the dollar will both appreciate.C.the peso will depreciate and the dollar will appreciate.D.the peso will appreciate and the dollar will depreciate.

Weegy: The answer is C.the peso will depreciate and the dollar will appreciate.
Expert answered|bongche|Points 1845|

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Asked 5/7/2012 11:15:10 PM
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