Which of the following is a valid criticism of the rational expectations theory?
A. prices do not wait on events
B. the assumption seems too strong
C. people form the most accurate possible expectations
D. adjustment of wages and prices might be quite rapid
Answer:B
Which of the following is a valid criticism of the rational expectations theory?
A. prices do not wait on events B. the assumption seems too strong C. people form the most accurate possible expectations D. adjustment of wages and prices might be quite rapid
Explanation: Type: Multiple Choice Category: Evaluate