Multiple Choice
Rational expectations theory describes the assumption that people are _____,and adaptive expectations theory describes the assumption that people are _____.
A) forward-looking;backward-looking
B) backward-looking;forward-looking
C) rational;irrational
D) profit maximizers;loss minimizers
Correct Answer:

Verified
Correct Answer:
Verified
Q72: A consequence of trying to keep unemployment
Q194: Deflation is a problem because it requires
Q197: The 2007-2009 recession was _ the previous
Q227: Subprime mortgages are home loans to high-quality
Q236: An increase in worker productivity would cause
Q238: One major conclusion of the rational expectations
Q240: Use the following to answer questions <br>Figure:
Q242: Wall Street ratings firms had an incentive
Q259: According to the Phillips curve analysis, the
Q264: Suppose you are a day trader in