The View That Decision-Maker Expectations Are Based on Actual Outcomes

question 22

Multiple Choice

The view that decision-maker expectations are based on actual outcomes observed during the recent past is called the

• A) rational expectations hypothesis.
• B) adaptive expectations hypothesis.
• C) permanent income theory.
• D) recognition lag.

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Definitions:

Rodents

A diverse group of mammals characterized by their continuously growing incisors, including mice, rats, squirrels, and beavers.

Lobe-Finned Fishes

Fish species characterized by fleshy, lobed, paired fins, which are believed to be the ancestors of amphibians and other land vertebrates.

Tetrapods

Vertebrates with four limbs or limb-like appendages, including amphibians, reptiles, birds, and mammals.

Ray-Finned Fishes

A diverse group of fishes known for their fins which are supported by long, bony rods arranged in a ray pattern.