If Samantha predicts future inflation based on rational expectations, then
A. her forecast of inflation will always be correct.
B. she uses all relevant information to forecast inflation.
C. she looks only to the past to help her predict future inflation.
D. she never under estimates inflation.
Answer:B
If Samantha predicts future inflation based on rational expectations, then
A. her forecast of inflation will always be correct. B. she uses all relevant information to forecast inflation. C. she looks only to the past to help her predict future inflation. D. she never under estimates inflation.