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Author Question: People are said to have rational expectations if they (Read 15 times)

Hungry!

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on: Apr 19, 2019

Question 1

The rational-expectations hypothesis suggests that errors in forecasting future inflation rates are due to


◦ random, unpredictable events.
◦ the fact that people assume that the current inflation rate will continue into the future.
◦ the fact that people consistently underestimate future inflation.
◦ the fact that people consistently overestimate future inflation.

Question 2

People are said to have rational expectations if they


◦ use all available information in forming their expectations.
◦ assume that this year's inflation rate will be equal to the average inflation rate over the past 10 years.
◦ merely guess at the inflation rate.
◦ assume that this year's inflation rate will be the same as last year's inflation rate.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Hungry! on Apr 19, 2019

sarah_brady415

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Hungry!

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Reply #2 on: Apr 19, 2019
TY


sarah_brady415

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Reply #3 on: Apr 19, 2019
You're welcome


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