A forecast based on all the relevant information is
A)a perfect forecast.
B)always a correct expectation.
C)an adaptive expectation.
D)a future expectation.
E)a rational expectation.

Question

Quizplus · Accepted Answer

A forecast based on all the relevant information is known as a rational expectation. It is the expectation that individuals form based on all available information, including current and past economic data, market trends, and policy announcements. Rational expectations are considered to be the most accurate forecasts because they take into account all available information and are not biased by personal opinions or beliefs.

A Forecast Based on All the Relevant Information Is