5.
									
										Rational Expectations Hypothesis suggests that the forecasts that people make:
									
								
															
														
																									
										A:
											Consistently overestimate the actual rate of inflation in future 
									
																										
										B:
											Are always correct 
									
																										
										C:
											Consistently underestimate the actual rate of inflation in future 
									
																										
										D:
											Are correct on average but are subject to errors that are distributed randomly
									
																								 
							
																
									The answer is:
										D
									
								
														
							
								
								
							
							
							
								