Which Theory Proposes That People Optimally Use All Available Information

question 65

Multiple Choice

Which theory proposes that people optimally use all available information when forecasting the future?

• A) rational expectations
• B) perfect expectations
• C) momentum expectations
• D) policy expectations

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Definitions:

Response Cue

A signal or stimulus that indicates how to react or what action to take next in a given situation.

Compliance

The act of conforming to, following, or adhering to rules, standards, or laws, or in medicine, the degree to which a patient correctly follows medical advice.

Explicit Request

A direct and clear demand or appeal for something.

Deindividuation

The lessening of personal identity, self-restraint, and the sense of personal responsibility that can occur within a group.