The rational expectations hypothesis indicates that people
a. pay little attention to policy when forming their expectations about the future.
b. expect the next period to be pretty much like the recent past, regardless of policy changes.
c. will always be able to forecast the future accurately.
d. change their expectations about the future if policy changes.
D
Economics
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Which of the following is likely to increase the equilibrium real interest rate?
a. greater tax benefits for IRAs b. technological improvement creating profitable investment opportunities c. elimination of an investment tax credit for corporations d. an increased consumption tax
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What is the difference between explicit collusion and implicit collusion?
What will be an ideal response?
Economics