The rational expectations hypothesis is based on all the following assumptions EXCEPT

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The rational expectations hypothesis assumes that individuals have an understanding of how the economy operates, use knowledge of the effects of past policy actions, and use their judgment to predict the effects of future policy actions. However, it does not assume that prices are sticky. In fact, one of the key implications of the rational expectations hypothesis is that prices adjust quickly and efficiently to changes in supply and demand.

The Rational Expectations Hypothesis Is Based on All the Following