Rational Expectations Theory Suggests That ________

Multiple Choice

Rational expectations theory suggests that ________.

A) consumers base their expectations about the future largely on past experience
B) economic agents will always alter their decision-making when a new piece of information becomes available
C) economic agents will not be influenced by a piece of information if that information has already been anticipated
D) consumers need not form expectations about the far flung future since most consumption decisions involve satisfying an immediate impulse,e.g.hunger