Multiple Choice
A hypothesis that individuals base their expectations on available information and act on that information is called the:
A) irrational forecasts hypothesis.
B) rational information theory hypothesis.
C) rational expectations hypothesis.
D) rational abstention hypothesis.
Correct Answer:

Verified
Correct Answer:
Verified
Q246: The real business cycle theorists say that
Q247: The Great Moderation consensus about macroeconomic policy
Q248: Which school of thought believes that expansionary
Q249: Macroeconomic policy activism:<br>A) is the use of
Q250: Classical economists did NOT believe that:<br>A) there
Q252: The consensus is that the Great Depression
Q253: Real business cycle theory argues that:<br>A) changes
Q254: The theory of rational expectations states that:<br>A)
Q255: Which argument was a justification for breaking
Q256: Which statement does NOT represent the broad