Rational Expectations Theory Suggests That ________

question 34

Multiple Choice

Rational expectations theory suggests that ________.

• A)consumers base their expectations about the future largely on past experience
• B)economic agents will always alter their decision-making when a new piece of information becomes available
• C)economic agents will not be influenced by a piece of information if that information has already been anticipated
• D)consumers need not form expectations about the far flung future since most consumption decisions involve satisfying an immediate impulse,e.g.hunger

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Definitions:

Psychodynamic Theory

A psychological perspective that emphasizes unconscious processes and the influence of early life experiences on behavior and personality development.

Humanistic Theory

A psychological perspective which emphasizes individual potential and stresses the importance of growth and self-actualization.

Gender Schema Theory

A cognitive theory that posits gender as a fundamental way in which individuals organize information about themselves and the world, influencing perception, behavior, and attitudes based on societal norms.

Observational Learning Theory

Suggests that people can learn new behaviors and information by watching others, also known as social learning theory.