An expectation may fail to be rational if
A)relevant information was not available at the time the forecast is made.
B)relevant information is available but ignored at the time the forecast is made.
C)information changes after the forecast is made.
D)information was available to insiders only.

Question

Quizplus · Accepted Answer

Expectations are considered irrational if relevant information is available but deliberately ignored when making a forecast. This indicates a failure to incorporate all known information into the decision-making process, which is a key aspect of rational expectations.

An Expectation May Fail to Be Rational If