Question

3)explain the rational expectation hypothesis with suitable diagram.
100 points​

Answer 1

Explanation:

The idea behind the rational expectations theory is that past outcomes influence future outcomes. The theory also believes that because people make decisions based on the available information at hand combined with their past experiences, most of the time their decisions will be correct

Answer 2

The idea behind the rational expectations theory is that past outcomes influence future outcomes. The theory also believes that because people make decisions based on the available information at hand combined with their past experiences, most of the time their decisions will be correct.