Rational Expectations Theory Is Also Known as the Friedman Fooling

question 2

True/False

Rational expectations theory is also known as the Friedman fooling theory.

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Definitions:

Permanent State

A condition or status that does not change over time and remains constant indefinitely.

Despair

A profound sense of hopelessness, often accompanied by a loss of motivation and decreased emotional well-being.

Indifferent

Having no particular interest or sympathy; unconcerned or neutral towards something.

Psychological State

An individual's current mental condition or mind state, which can affect perceptions, emotions, and behavior.