Which of the following theories of expectations holds that individuals use all information available in forming expectations?

A) Rational expectations theory
B) Certainty equivalent theory
C) Expected value analysis
D) Adaptive expectations theory
E) Economic behaviorists

Theories Of Expectations

Economic theories that explore how the expectations of individuals or firms about future economic conditions affect their current decision-making and behavior.

Rational Expectations Theory

A concept suggesting that individuals make decisions based on their rational outlook, available information, and past experiences.

Certainty Equivalent Theory

A concept in decision theory that quantifies the value of a risky asset in terms of a certain amount of money.