When market participants have adaptive expectations
A) they use all information available to them.
B) they only slowly adjust their expectations to news which could affect prices or returns.
C) they are more likely to make accurate forecasts than if they have rational expectations.
D) they are able to forecast interest rates more accurately than inflation rates.
B
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Which of the following is a tool the Fed uses to adjust the quantity of money?
i. The Fed can change the interest rate banks charge for loans to their prime customers. ii. The Fed can change the discount rate on loans to banks. iii. The Fed can buy or sell government securities. A) i only B) ii only C) iii only D) i and iii E) ii and iii
The graphical device that illustrates the concept of scarce resources being efficiently utilized in the economy is a(n)
A. budget line. B. indifference curve. C. production possibilities frontier. D. marginal cost curve.
If outsiders had more say in union contracts then it is likely that union wages would be
a. higher so unemployment would be higher. b. higher so unemployment would be lower. c. lower so unemployment would be higher. d. lower so unemployment would be lower.
Refer to the above table. The table represents information on the costs for Ajax Corporation. Ajax operates in a perfectly competitive market and the price of the product is $8. What will be the value of total revenue when quantity sold equals 3?
A. $3 B. $24 C. $27 D. $9