900EconomicsMedium
People are said to have rational expectations if they?
AUse all available information in forming their expectations.
Bassume that this year’s inflation rate will be the same as last year’s inflation rate
Cassume that this year’s inflation rate will be equal to the average inflation rate over the past 10 years
Dmerely guess at the inflation rate.
Correct answer
A. Use all available information in forming their expectations.
Explanation
The correct answer is Use all available information in forming their expectations..