If expectations are formed adaptively,then people
A)use more information than just past data on a single variable to form their expectations of that variable.
B)often change their expectations quickly when faced with new information.
C)use only the information from past data on a single variable to form their expectations of that variable.
D)never change their expectations once they have been made.

Question

Quizplus · Accepted Answer

Adaptive expectations theory suggests that individuals form their expectations about the future based on past data and experiences, specifically focusing on a single variable's historical data without quickly altering their expectations with new information or using a broader set of information sources.

If Expectations Are Formed Adaptively,then People