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.

---

Definitions:

Thalamus

A part of the brain located above the brainstem that acts as a relay station for sensory and motor signals to the cerebral cortex.

Bypasses

Routes that are taken to avoid something or to ease congestion; in a metaphorical sense, can refer to methods used to circumvent problems or challenges.

Smell

The sense that enables the detection of odors, which is mediated by the olfactory system.

Pituitary Gland

A small, pea-sized gland located at the base of the brain, crucial for regulating vital body functions and general well-being through the secretion of hormones.