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According to the Rational Expectations Hypothesis, Unpredictable Shocks Explain the Existence

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According to the rational expectations hypothesis, unpredictable shocks explain the existence of


Definitions:

Exchange

The promise of rewards to persuade another person to cooperate.

Coalition Building

Gathering the support of others as a reason for another person to agree to a request.

Assertiveness

The use of demands or threats to persuade someone to carry out a task.

Referent Power

A form of influence derived from the admiration one has for an individual, leading to a desire to emulate or gain approval from that person.

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