Consider the following statement: Rational expectations assumes that all people are completely rational, and because this probably

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Consider the following statement: “Rational expectations assumes that all people are completely rational, and because this probably is not true, this theory doesn’t help explain price behavior.” Do you agree with this statement? Briefly explain.
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Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

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