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

Question

Quizplus · Accepted Answer

A rational expectation takes into account all the relevant information available at the time of the forecast. It is based on logical analysis and uses all available data to make a prediction. While it may not always be correct, it is considered the most accurate way to forecast future events. Adaptive expectations are based on past experiences and may not be relevant to future events, while perfect forecasts are impossible due to the unpredictable nature of certain economic variables.

A Forecast Based on All the Relevant Information Is