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Economics
MEDIUM
ENGLISH
Economics
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
Option A
B
merely guess at the inflation rate.
Option B
C
assume that this year’s inflation rate will be equal to the average inflation rate over the past 10 years
Option C
Use all available information in forming their expectations.
Correct answer
Correct answer: D
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