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.

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Definitions:

Private Acceptance

A genuine inner belief that others are right.

Public Compliance

Outwardly going along with the group but maintaining a private, inner belief that the group is probably wrong.

Juvenile Delinquent

A young person, typically under the age of 18, who has committed a criminal act or is considered problematic by legal authorities.

Mode

The value that appears most frequently in a data set, a measure of central tendency in statistics.