Mcqs Clouds
mcqsclouds.com

The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ?

A. Rational-expectations hypothesis

B. Passive-expectations hypothesis

C. adaptive expectations hypothesis

D. lagged-expectations hypothesis.

Related Questions on Roots of Modern Macroeconomics Mcqs

People are said to have rational expectations if they ?

A. assume that this year’s inflation rate will be the same as last year’s inflation rate

B. merely guess at the inflation rate.

C. assume that this year’s inflation rate will be equal to the average inflation rate over the past 10 years

D. Use all available information in forming their expectations.