A Rational Expectation Is

question 135

Multiple Choice

A rational expectation is

• A)an incorrect forecast.
• B)necessarily correct because it is the best available forecast.
• C)a correct forecast but it might not be the best available forecast.
• D)not necessarily correct but is the best available forecast.

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Definitions:

Reflective Judgment

The process of critically evaluating the validity of various propositions or hypotheses.

Prereflective Thinking

A level of cognition occurring without conscious awareness or reflection on the thought process itself.

Dialectical Reasoning

A method of argument that involves the contradiction between two interacting forces, leading to their resolution and the development of a synthesis.

Contextual Intelligence

The ability to understand the limits of our knowledge and to adapt that knowledge to an environment different from the one in which it was developed.