The Major Criticism of the View That Expectations Are Formed

question 31

Multiple Choice

The major criticism of the view that expectations are formed adaptively is that

• A)this view ignores that people use more information than just past data to form their expectations.
• B)it is easier to model adaptive expectations than it is to model rational expectations.
• C)adaptive expectations models have no predictive power.
• D)people are irrational and therefore never learn from past mistakes.

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Definitions:

Statistics

The science of collecting, analyzing, presenting, and interpreting data.

Sociology

The study of social behavior, society, patterns of social relationships, social interaction, and culture that surrounds everyday life.

Content Analysis

A research method used to systematically analyze and quantify content in communication and media.

Sociology

The scientific study of society, its institutions, and the relationships among individuals within those institutions.