Question

According to rational expectations theory, Question 7 options: every day is a new day and yesterday's occurrences have no bearing on today's decisions. when making decisions a person will consider only information based on past experience. even though a person considers information related to future events as potentially important for decision making, he realizes that such information is unreliable and worthless. past experience is a good guide for decision making, but so is information related to possible future outcomes.

Answer 1

Answer:

past experience is a good guide for decision making, but so is information related to possible future outcomes.

Explanation:

The rational expectations theory refer to a concept and modeling technique that is applied widely in macroeconomics. In this the individual depend their decision on three main factors i.e. human rationality, available information and the past experience

As per the rational expectations theory the future should always be taken in expectation with regard to the decisions and it is vital for the same.

So as per the given situation, the above should be the answer