According to Rational Expectations Theory

question 82

Multiple Choice

According to rational expectations theory,

• A) every day is a new day and yesterday's occurrences have no bearing on today's decisions.
• B) when making decisions a person will consider only information based on past experience.
• C) even though a person considers information related to future events as potentially important for decision making,he realizes that such information is unreliable and worthless.
• D) past experience is a good guide for decision making,but so is information related to possible future outcomes.

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Definitions:

Ethical Standards

Guidelines that dictate the conduct considered acceptable and morally right in a professional or organizational setting.

Organization's Stakeholders

Individuals or groups that have an interest in the success and decisions of an organization, including employees, customers, suppliers, and shareholders.

Search For Alternatives

The stage in decision-making processes where different options or courses of action are identified and explored.

Problem Identification

The process of recognizing and defining issues or challenges that need to be addressed.