One result of the Lucas rational-expectations model is that an anticipated increase in the money supply
A) becomes more effective in manipulating GDP when firms' pricing decisions are more responsive to forecasts of general price levels.
B) is completely ineffective in manipulating GDP if firms' pricing decisions are not responsive to forecasts of general price levels.
C) is completely ineffective in manipulating GDP because monetary policy does not affect aggregate demand.
D) b and c only.
E) none of the above.

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The Answer of One result of the Lucas rational-expectations model is that an anticipated increase in the money supply
A) becomes more effective in manipulating GDP when firms' pricing decisions are more responsive to forecasts of general price levels.
B) is completely ineffective in manipulating GDP if firms' pricing decisions are not responsive to forecasts of general price levels.
C) is completely ineffective in manipulating GDP because monetary policy does not affect aggregate demand.
D) b and c only.
E) none of the above.

One Result of the Lucas Rational-Expectations Model Is That an Anticipated