According to the Rational Expectations Hypothesis, Individuals Form Their Expectations

question 118

Multiple Choice

According to the rational expectations hypothesis, individuals form their expectations about future values of economic variables by all of the following EXCEPT

• A)past information.
• B)current information.
• C)their understanding of how the economy operates.
• D)formal models of macroeconomics.

---

Definitions:

Local Book Store

A retail establishment that primarily sells books, often offering a selection that may include both new and used books, and may also host community events.

Personal Property

Any item that is movable and not fixed to real estate, including tangible items like cars, furniture, and electronic devices, as well as intangible items like stocks and bonds.

Real Property

Land and anything permanently attached to it, such as buildings, also known as real estate.

E Ink

A type of electronic paper display technology characterized by low power consumption and high readability in direct sunlight.