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Related Definitions
Rational expectations Rational expectations is the expectations that reflect optimal forecasts (the best guess of the future) using all available information.
Expectations theory Expectations theory is the proposition that the interest rate on a long-term bond will equal the average of the short-term interest rates that people expect to occur over the life of the long-term bond.
Adaptive expectations Adaptive expectations is the theory that behaviour changes because of what people expect will happen: so workers ask for more pay because