Under Rational Expectations

question 16

Multiple Choice

Under rational expectations,

• A)people use all the information at their disposal to make their best forecast of the coming rate of inflation.
• B)people use all past rates of inflation to make their best forecast of the coming rate of inflation.
• C)people use announcements by the Fed to make their best forecast of the coming rate of inflation.
• D)people use only the Fed's inflation target to make their best forecast of the coming rate of inflation.
• E)people use the unemployment rate to make their best forecast of the coming rate of inflation.

---

Definitions:

Assignee

An individual, group, or legal entity to which rights or interests have been transferred by another, known as the assignor.

Assigned Rights

Assigned rights involve the transfer of rights or duties under a contract from one party to another, not transferring the entire contract but specific benefits.

Contractual Obligations

Duties that are legally required to be fulfilled under the terms of a contract.

Assignment Protocol

Assignment Protocol is a set of rules or procedures designated for assigning tasks, responsibilities, or resources in an organized manner.