Which of the Following Is True According to the Text

question 2

Multiple Choice

Which of the following is true according to the text?

• A) The forecast bias of a currency rarely shifts over time.
• B) The absolute forecast error as a percentage of the realized value is a good measure to use in detecting a forecast bias.
• C) Forecasting errors are smaller when focused on longer term periods.
• D) None of these are correct.

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Definitions:

Output Of Goods

The total quantity of products or services produced by a company, industry, or economy within a specific time period.

Economic Pie

A metaphorical representation of the total wealth or economic output available for distribution or sharing among a population or group.

Production Possibilities Curve

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Efficient

Characterizes a system or process that achieves its goals with minimal waste of time, resources, or effort.