Rational expectations implies a. traders ignore foreign interest rates b. traders must be compensated for taking...
Rational expectations implies
a. traders ignore foreign interest rates
b. traders must be compensated for taking risks
c. traders expect to lose money on a given transaction
d. traders take into account all available information
Homework Answers
According to the basic meaning of rational is logical
And expectations meaning with related to the future
So rational expectation meaning when traders and agents take all available information and also some learning from past helps in better future planning for various economic policies and decisions
Hence the answer is option D
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