According to Rational Expectations Theory,forecast Errors of Expectations

question 98

Multiple Choice

According to rational expectations theory,forecast errors of expectations

• A)are more likely to be negative than positive.
• B)are more likely to be positive than negative.
• C)tend to be persistently high or low.
• D)are unpredictable.

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Definitions:

Incapacity

The lack of ability, qualification, or strength to do something; specifically, the legal inability to enter into a contract.

Principal

A principal is a person or entity for whom another acts as an agent. In business contexts, it can also refer to the main party to a transaction who has the rights and responsibilities from the agreement.

Subrogation

The legal right for an insurer or third party to pursue a legal right or a claim against a wrongdoer on behalf of the insured party.

Expenditures

The act of spending or disbursing money, often related to business or government transactions.