The Rational Expectations Hypothesis Suggests That

question 45

Multiple Choice

The rational expectations hypothesis suggests that

• A) people are creatures of habit and tend not to change their economic behavior in the short run.
• B) people are rational if they make forecasts about economic activity.
• C) people use all available information to make forecasts about future economic activity and adjust their behavior to these forecasts.
• D) people use all available information to make forecasts about future economic activity but often fail to adjust their behavior to these forecasts.

---

Definitions:

T Lymphocytes

A type of white blood cell that plays a central role in cell-mediated immunity, recognizing and attacking infected cells and cancer cells.

Cell-Mediated Immunity

A type of immunity in which T cells recognize and destroy infected or cancerous cells without the involvement of antibodies.

Delayed Hypersensitivity

A type of immune response that occurs days after exposure to an antigen, involving T cells rather than antibodies.

Eosinophils

A type of white blood cell involved in the body's immune response, particularly related to allergies and infections.