

MCQOPTIONS
Saved Bookmarks
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. | |