The Argument in Favor of Rational Expectations Is That

question 203

Multiple Choice

The argument in favor of rational expectations is that

• A) people will continue to acquire information as long as the marginal benefit of that information is positive.
• B) individuals have a very good idea of what to expect from the government in terms of monetary policy but not fiscal policy.
• C) it is costless for individuals and firms to form rational expectations.
• D) if expectations were not rational, there would be unexploited profit opportunities available.

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Characteristics or aspects that pertain to the method and process of constructing buildings or infrastructure.

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