If people have rational expectations,then they
A) are correct at least 50% of the time.
B) do not make systematic and correctable errors in prediction.
C) sometimes overestimate,but never underestimate,economic variables.
D) revise their expectations upward when their predictions are too low and downward when they are too high.

Question

Quizplus · Accepted Answer

Rational expectations assume that individuals make predictions based on all available information and do not make systematic and correctable errors in prediction.

If People Have Rational Expectations,then They