The Hypothesis That Assumes That Individuals Form Expectations About the Future

question 108

Multiple Choice

The hypothesis that assumes that individuals form expectations about the future based on
Available information and that individuals act on that information is called the

• A) random expectations theory.
• B) rational information hypothesis.
• C) rational expectations hypothesis.
• D) adaptive expectations hypothesis.

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Statements that express opinions about how the world ought to be, involving subjective judgments or prescriptions for economic policies.

Normative Statements

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