According to Rational Expectations

question 66

Multiple Choice

According to rational expectations,

• A)people never make mistakes when they forecast the future.
• B)people never make systematic mistakes when they forecast the future.
• C)people always overestimate the inflation rate.
• D)people always underestimate the money supply effects.

---

Definitions:

Functional Area

Specific sectors within a business or organization dedicated to particular tasks or operations, such as marketing, finance, or human resources.

Consumer Protectionism

Policies and measures designed to protect the rights and welfare of consumers by ensuring fair trade and accurate information in the marketplace.

Government Entities

Organizations or agencies that are part of the state or federal government and are responsible for administering specific functions.

Consumers

Individuals or groups that purchase or have the potential to purchase goods and services for personal use.