Multiple Choice
On rainy days,Jennifer's commute time to work averages 45 minutes. Before leaving,Jennifer hears on the radio that a street on her route is closed due to high water. She plans to add an additional 15 minutes to her commute because of the detour. This decision represents
A) rational expectations. She is changing her expectations to reflect new information.
B) adaptive expectations. She is adapting her plan to what she heard.
C) irrational expectations. Everyone knows that radio news is unreliable.
D) irrational expectations. She should just call in sick and not get out in the bad weather.
Correct Answer:
Verified
Correct Answer:
Verified
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