According to the Rational Expectations Theory

question 90

Multiple Choice

According to the rational expectations theory

• A) the public makes consistent errors when forming expectations.
• B) only central bankers form expectations rationally.
• C) the public, on average, anticipates the future correctly.
• D) the public only uses a portion of the available information when forming expectations.

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Definitions:

United Nations

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An island nation in the northwest of Europe, historically referring to the land of the Britons, and now more commonly associated with the United Kingdom.

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An Independence Struggle is a conflict and series of actions taken by a country or region to gain sovereignty and self-government, often from colonial or oppressive rulers.