Which of the Following Refers to the Theory That People

question 62

Multiple Choice

Which of the following refers to the theory that people optimally use all available information when forecasting the future?

• A)rational expectations theory
• B)perfect expectations theory
• C)momentum expectations theory
• D)accommodating expectations theory

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Definitions:

Physiological

Relating to the functions and activities of living organisms and their parts, including all physical and chemical processes.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, often seen as the highest need in Maslow's hierarchy of needs.

Esteem

The respect and admiration that an individual is regarded with by others.

Subjective Experience

refers to the personal and internal perceptions, feelings, or thoughts that an individual has, which are inherently unique and cannot be directly known to others.