"All available information" in the definition of rational expectations means that
a. agents use all possible information that could be out there.
b. agents use all possible public information that could be out there.
c. agents use all information that is relevant.
d. agents use all information that is available in which the marginal benefits of the information are greater than the marginal costs of gathering the information.
D
You might also like to view...
Critics of Douglass North's "market opportunity response" model suggest that surges in land sales in the Old Northwest in the 1810s, 1830s and 1850s were due to
a. improved transportation between the Old Northwest and the Northeast. b. rising prices for hogs. c. a reduction of British interference. d. pervasive land speculation.
Because a price ceiling causes:
A. a shortage, some form of rationing must occur. B. a surplus, some form of rationing must occur. C. a shortage, the outcome will be efficient. D. a surplus, the outcome will be inefficient.
Which of the following industries relies heavily on peak/off-peak pricing?
A. Auto manufacturing B. Computer software C. Airlines D. Book publishing
Which of the following is a government expenditure, but is NOT a government purchase?
a. The federal government buys a Humvee. b. The federal government pays the salary of an FBI agent. c. The federal government pays out an unemployment insurance claim. d. The federal government pays to support research on Aids.