In the past, some people believed that the Federal Reserve would expand the money supply during presidential election years in order to stimulate the economy and help the incumbent president. For this question, assume that the Fed increases inflation by 3% in every election year. Based on this assumption, which of the following statements is true? If market participants expect 0% inflation during an election year, then the unemployment rate will fall. 0 This will cause the unemployment rate to rise If market participants form their expectations rationally during an election year, then unemployment rate will rise. If market participants cxpcct 0% inflation during an election year, then the unemployment rate will risc
