The theory of rational expectations suggests that
A) people never make forecast errors.
B) people make intelligent use of available information.
C) people make systematic forecast errors.
D) people are slow to incorporate new information into their forecasts.
B
You might also like to view...
Refer to Figure 7.1. The benevolent social planner would want the outcome represented in the ________ box
A) upper left B) upper right C) lower left D) either A or C
Which of the following statements concerning the supply of labor is true?
a. The supply of labor is determined by the prevailing wage rate. b. The labor supply curve is downward sloping. c. The wage rate has no effect on the supply of labor. d. None of these.
What was the nominal GDP in 2011?
a. 98.118
b. 101.755
c. 15,542.6
d. 15,840.7
Which of the following is(are) the effect(s) of an international trade agreement that provides an incentive and reward for nations NOT to impose tariffs?
I. an increase in world welfare and standard of living II. an opportunity for low-income nations to exploit the gains from trade. III. an opportunity for large countries to improve their terms of trade a. I b. I and II c. I and III d. I, II, and III