The hypothesis that people's spending decisions are based on all available information,including the anticipated effects of government intervention,is known as
A)The velocity of money.
B)Rational expectations.
C)Fiscal expectations.

Question

Quizplus · Accepted Answer

The hypothesis that people's spending decisions are based on all available information, including the anticipated effects of government intervention, is known as rational expectations. This means that individuals make decisions based on all available information, including their expectations of future economic policies and outcomes. The other options, the velocity of money and fiscal expectations, do not adequately capture the hypothesis described in the question.

The Hypothesis That People's Spending Decisions Are Based on All