One Economic Theory States That People Combine the Effects of Past

question 69

Multiple Choice

One economic theory states that people combine the effects of past policy changes on important economic variables with their own judgment about the future effects of current and future policy changes,and react accordingly.This theory is known as the

• A)relevance hypothesis.
• B)contrary opinion hypothesis.
• C)rational expectations hypothesis.
• D)structural hypothesis.

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Definitions:

Basic Laws of Behavior

Fundamental principles that describe predictable ways in which organisms learn and behave based on their interactions with the environment.

Cognitive Psychologist

A professional who studies mental processes such as perception, memory, thought, and problem-solving to understand human behavior and cognition.

Darwin's Theory

A scientific theory of biological evolution developed by Charles Darwin, stating that all species of organisms arise and develop through natural selection.

Determinism

The philosophical belief that all events are determined completely by previously existing causes.