The Argument in Favor of Rational Expectations Is That

Multiple Choice

The argument in favor of rational expectations is that

A) people will continue to acquire information as long as the marginal benefit of that information is positive.
B) individuals have a very good idea of what to expect from the government in terms of monetary policy but not fiscal policy.
C) it is costless for individuals and firms to form rational expectations.
D) if expectations were not rational, there would be unexploited profit opportunities available.