You have learned that rational expectations are formed by individuals acquiring information up to the point where

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You have learned that rational expectations are formed by individuals acquiring information up to the point where the perceived marginal cost is equal to the marginal benefit of doing so. Based on this idea:

a) Should a central bank announce one policy objective and secretly try to achieve another?

b) How can a central bank achieve policy credibility?

c) How does announcing a specific policy objective, such as a target inflation rate, limit policy decisions?

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