The hypothesis that assumes that individuals form expectations about the future based on Javailable information and that individuals act on that information is called the
A) random expectations theory.
B) rational information hypothesis.
C) rational expectations hypothesis.
D) adaptive expectations hypothesis.

Question

Quizplus · Accepted Answer

The hypothesis that assumes that individuals form expectations about the future based on available information and that individuals act on that information is called the rational expectations hypothesis. This means that individuals use all available information to make informed decisions about the future, rather than relying on past data or random guesses.

The Hypothesis That Assumes That Individuals Form Expectations About the Future