New information ought not to influence economic decision-making if ________.
A)consumers rely on rational expectations
B)monetary policy changes
C)monetary and/or fiscal policy changes
D)that information has already been anticipated

Question

Quizplus · Accepted Answer

If the information has already been anticipated, it would have been priced into the market and would not cause a change in economic decision-making. This is known as rational expectations, where individuals incorporate all available information into their decision-making. Monetary and/or fiscal policy changes may affect economic decision-making, but only if they are unexpected and not already priced into the market.

New Information Ought Not to Influence Economic Decision-Making If ________