MCQOPTIONS
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| 1. |
People are said to have rational expectations if they ? |
| A. | assume that this year’s inflation rate will be the same as last year’s inflation rate |
| B. | merely guess at the inflation rate. |
| C. | assume that this year’s inflation rate will be equal to the average inflation rate over the past 10 years |
| D. | Use all available information in forming their expectations. |
| Answer» E. | |