George is trying to forecast the future price of IBM's common stock. To do so he makes use only of past prices of IBM stock. George
A) has adaptive expectations.
B) has rational expectations.
C) is likely to rapidly adjust his forecast to news affecting the future profitability of IBM.
D) is likely to make forecasts that reflect closely IBM stock's fundamental value.
A
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Which of the following macroeconomic variables is not in the equation of exchange?
a. GDP price index. b. Real GDP. c. Real exchange rate. d. Money supply. e. All of the above are part of the equation of exchange.
Losers from inflation include:
A. those on a fixed income and savers. B. landlords and the government. C. borrowers and the government. D. those on a fixed income and borrowers.
When there is a positive externality associated with the watering of one's lawn, the free market results in:
A. not enough lawn watering. B. too much lawn watering. C. the socially optimal level of lawn watering. D. government subsidies for lawn watering.
Refer to Figure 3.4. The odds of Serena and Austin meeting randomly to view the sunset are
A) 0%. B) 25%. C) 50%. D) 100%.