According to Rational Expectations Theory

Multiple Choice

According to rational expectations theory,

A) every day is a new day and yesterday's occurrences have no bearing on today's decisions.
B) when making decisions a person will consider only information based on past experience.
C) even though a person considers information related to future events as potentially important for decision making,he realizes that such information is unreliable and worthless.
D) past experience is a good guide for decision making,but so is information related to possible future outcomes.