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    Exam 8: The Power of Arbitrage: Purchasing Power and Interest Rate Parities
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    The Rational Expectations Hypothesis Suggests That People Form Expectations Based
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The Rational Expectations Hypothesis Suggests That People Form Expectations Based

Question 3

Question 3

True/False

The rational expectations hypothesis suggests that people form expectations based on all available past and current information and on a basic understanding of how markets function.

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