The Rational Expectations Hypothesis Assumes That People Know the "True

question 141

True/False

The rational expectations hypothesis assumes that people know the "true model" of the economy and form their expectations of the future based on this model.

---

Definitions:

Significance Level

The chance of wrongly rejecting the true null hypothesis during a statistical examination.

Confidence Interval

A statistical range, with a given probability, that is likely to contain the true value of an unknown population parameter.

Mean Weekly Salary

The average amount of money earned by workers in a week, calculated by summing all weekly salaries and dividing by the number of salaries.

Female Employees

Women who are employed by an organization, company, or business.