Rational expectations assumes that individuals A) can ...

[anshika]

Rational expectations assumes that individuals
 
  A) can accurately predict the future.
  B) make predictions based on the past behavior of the economy.
  C) form their predictions of macroeconomic variables randomly.
  D) have perfect foresight.
  E) none of the above

Question 2

The borrowing rate is
 
  A) the rate at which consumers and firms can borrow.
  B) a nominal interest rate.
  C) determined by monetary policy.
  D) a risk premium.

[Dominic]

Answer to Question 1

E

Answer to Question 2

A

[anshika]

Thanks for the timely response, appreciate it

[ryhom]

YES! Correct, THANKS for helping me on my review