When market participants have rational 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 less likely to make accurate forecasts than if they have adaptive expectations.
D) they are able to forecast interest rates more accurately than inflation rates.
A
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Which of the following statements is true?
A) A worker who undertakes general training is likely to earn above his value of marginal product. B) Firm-specific training results in gains to a worker and not to an employer in the labor market. C) Job-specific training results in gains to a worker's employer, but it does not result in gains to the worker in the labor market. D) Training received by a worker does not affect his wages as wage rates are determined by the forces of demand and supply in the labor market.
Which of the following is a distinction between perfectly competitive and monopolistic competition?
a. Perfectly competitive firms must compete with rival sellers; monopolistically competitive firms do not confront rival sellers. b. Monopolistically competitive firms can raise their price without losing sales; perfectly competitive firms must lower their price in order to sell more of their product. c. Perfectly competitive firms confront a perfectly elastic demand curve; monopolistically competitive firms face a downward-sloping demand curve. d. Perfectly competitive firms may make either economic profits or losses in the short run, but monopolistically competitive firms always earn an economic profit.
Both the principles of rivalry and mutual excludability apply for club goods
a. True b. False Indicate whether the statement is true or false
Of the following, which could cause the demand curve for personal computers to shift to the left?
a. a decrease in the price of personal computers b. an increase in the price of computer software c. a decrease in the price of computer software d. an increase in wealth (assuming personal computers are a normal good) e. expectations of an increase in the price of personal computers in the future