Multiple Choice
Which of the following is NOT consistent with the rational expectations hypothesis?
A) Individuals use past information in forecasting future values.
B) Individuals use current information in forecasting future values.
C) Expectations incorporate an individual's understanding about how the economy operates.
D) Expectations are based on an assumption that the near future will simply repeat or continue the current situation.
Correct Answer:
Verified
Correct Answer:
Verified
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