The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ? Options: A . &nbspRational-expectations hypothesis B . &nbspPassive-expectations hypothesis C . &nbspadaptive expectations hypothesis D . &nbsplagged-expectations hypothesis.

The hypothesis that people know the true model of the economy and that they use

Discussion Forum : Roots Of Modern Macroeconomics

Question - The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ?

Options:

A . Rational-expectations hypothesis

B . Passive-expectations hypothesis

C . adaptive expectations hypothesis

D . lagged-expectations hypothesis.

Answer: Option A
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Discussion Forum : Roots Of Modern Macroeconomics

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