The Adaptive Expectations Hypothesis Implies That People

question 86

Multiple Choice

The adaptive expectations hypothesis implies that people

• A) adjust their expectations quickly to policy changes.
• B) expect the next period to be pretty much like the recent past.
• C) will always be correct in their forecast for the next period.
• D) change their expectations about the future if policy changes.

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Definitions:

Polymorphisms

The occurrence of two or more clearly different forms, or alleles, within the population of a species.

Polytypic

Describing the expression of genetic variants in different frequencies in different populations of a species.

Gene Flow

The transfer of genetic variation from one population to another, which can alter the composition of the gene pool.

Inbred

Resulting from breeding among close relatives, often leading to a higher chance of heritable genetic disorders.