Proponents of rational expectations theory argued that, in the most extreme case, if policymakers are credibly committed to reducing inflation and rational people understand that commitment and quickly lower their inflation expectations, the sacrifice ratio could be as small as a. 5. b. 4. c. 1. d. 0.

The answer is zero or option D.

Step-by-step explanation:

Proponents of rational expectations theory argued that, in the most extreme case, if policymakers are credibly committed to reducing inflation and rational people understand that commitment, and quickly lower their inflation expectations, the sacrifice ratio could be as small as 0.

to find the total number of combinations, multiply the quantity of each item by each other:

2 pairs of shoes x 3 pairs of shorts = 6 different combinations.