"All Available Information" in the Definition of Rational Expectations Means

question 37

Multiple Choice

"All available information" in the definition of rational expectations means that

• A)agents use all possible information that could be out there.
• B)agents use all possible public information that could be out there.
• C)agents use all information that is relevant.
• D)agents use all information that is available in which the marginal benefits of the information are greater than the marginal costs of gathering the information.

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Definitions:

Composition

An arrangement where creditors agree to accept a partial payment from a debtor instead of the full amount owed.

Collect

The act of gathering or accumulating items or amounts owed, commonly used in contexts such as collecting debts or data.

Creditors

Individuals or financial institutions that are owed money by debtors.

Fraudulent Transfer

A conveyance of property made with the intent to defraud creditors or to evade financial responsibilities.