Rational Expectations Theory Suggests That ________

question 34

Multiple Choice

Rational expectations theory suggests that ________.

• A)consumers base their expectations about the future largely on past experience
• B)economic agents will always alter their decision-making when a new piece of information becomes available
• C)economic agents will not be influenced by a piece of information if that information has already been anticipated
• D)consumers need not form expectations about the far flung future since most consumption decisions involve satisfying an immediate impulse,e.g.hunger

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Definitions:

19th Century

The period from January 1, 1801, to December 31, 1900, characterized by significant industrial, social, and political changes.

Biological Bases

The underlying physiological and genetic factors contributing to an individual's traits, behavior, or health conditions.

Neuroethics

An interdisciplinary field that explores the ethical, legal, and social implications of neuroscience.

Neuroscience

A multidisciplinary branch of science that combines physiology, anatomy, molecular biology, developmental biology, cytology, mathematical modeling, and psychology to understand the properties of neurons and neural circuits.