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Economics
MEDIUM
ENGLISH
Economics
The rational-expectation hypothesis suggests that the forecasts that people make concerning future inflation rates ?
A
consistently overestimate the actual rate of inflation in the future.
Option A
B
are always correct
Option B
C
consistently underestimate the actual rate of inflation in the future
Option C
are correct on average, but are subject to errors that are distributed randomly
Correct answer
Correct answer: D
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