Which Theory Proposes That People Optimally Use All Available Information

question 65

Multiple Choice

Which theory proposes that people optimally use all available information when forecasting the future?

• A) rational expectations
• B) perfect expectations
• C) momentum expectations
• D) policy expectations

---

Definitions:

Determinants of Performance

Factors or elements that significantly influence the output, efficiency, or effectiveness of individuals, teams, or organizations.

Essential Operations

Core activities necessary for an organization or system to function effectively.

Minimizes Costs

Strategies or actions taken to reduce expenses and financial outlay in business operations or personal budgeting.

Efficiency

The ability to achieve a desired result with minimal waste of time, effort, or resources.