The model that states that individuals develop their inflation expectations after considering all the available information is referred to as the:
A) adaptive expectations model. B) marginal expectations model.
C) composite expectations model. D) rational expectations model.
Question 2
Based on the assumptions in the Application, should Rory hire a gardener or cut the weeds himself?
A) He should hire the gardener because he would save 800.
B) He should cut the weeds himself because he would save 1,000.
C) He should hire the gardener because he would save 1,000.
D) He should cut the weeds himself because he would save 200.
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