Herbert Simon believed that the public uses rules of thumbs to predict inflation in the future because:
A) inflation is usually constant.
B) the public lacks the sophistication needed to analyze the complexity of the economy.
C) he believes that the public is irrational.
D) the economy moves in very predictable ways.

Question

Quizplus · Accepted Answer

Herbert Simon believed that the public lacked the sophistication needed to analyze the complexity of the economy, and therefore used rules of thumbs to predict inflation in the future.

Herbert Simon Believed That the Public Uses Rules of Thumbs