Multiple Choice
According to the rational expectations school, how do people form expectations?
A) On average, people who form expectations have very little idea of what to expect from government policymakers.
B) People form expectations by focusing only on the private sector.
C) People do NOT consider the likely government policies when forming expectations, thus they choose to remain rationally ignorant.
D) People form expectations, in part, by considering the probable future actions of government policymakers.
Correct Answer:

Verified
Correct Answer:
Verified
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