Rational expectations theory rejects the concept that only unanticipated or surprise policies can influence inflation.

Name: Rational expectations theory rejects the concept that only unanticipated or surprise policies can influence inflation.
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Question

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Rational expectations theory suggests that people use all available information to predict future economic variables, including inflation, and thus only unanticipated or surprise policies can influence inflation.

Rational Expectations Theory Rejects the Concept That Only Unanticipated or Surprise