- The act or state of expecting or looking forward to an
event as about to happen. - That which is expected or looked for. - The prospect of the future; grounds upon which
something excellent is expected to happen; prospect of anything good to
come, esp. of property or rank. - The value of any chance (as the prospect of prize or
property) which depends upon some contingent event. Expectations are
computed for or against the occurrence of the event. - The leaving of the disease principally to the efforts
of nature to effect a cure.
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
Definition
[ n.]