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Rational-inattention theory A. is an inclination for household choices to become automatic through frequent repetition. O B. indicates that people will not always possess enough
Rational-inattention theory A. is an inclination for household choices to become automatic through frequent repetition. O B. indicates that people will not always possess enough information to alter their inflation expectations, resulting in a vertical Phillips curve. O C. can be described as choosing to acquire information infrequently and to make decisions based on incomplete knowledge of the state of the economy during the intervals between updates. O D. is inconsistent with the new Keynesian theory of inflation dynamics
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