Which of the Following Would Be a Violation of the Rational

Multiple Choice

Which of the following would be a violation of the rational expectations assumption?

A) "Over the past twenty years, people have consistently under-predicted the inflation rate for the following year."
B) "Over the past twenty years, people have never once accurately predicted the inflation rate for the following year."
C) "The Fed's announcement that it might ease interest rates caused an immediate drop in short-term rates, even before the Fed took any action."
D) all of the above
E) none of the above