Can a persone with ration expectations after reading the newspaper. Expect the price of a share...
Can a persone with ration expectations after reading the newspaper. Expect the price of a share of google to rise by 20% in the next week?
Homework Answers
Yes, rational expectations imply that an individual takes into all available information to form his future expectations rather than just forming the expectations based on the past behaviour or trends that had occurred in the past .
So after reading newspaper, an individual can collect all relevant information to conclude that Google price share can rise by 20%
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