Which of the Following Best Explains Why Public Interest Rate

question 20

Multiple Choice

Which of the following best explains why public interest rate forecasts have a low rate of accuracy?

• A) Accurate forecasters do not make their forecasts public.
• B) Reasonably efficient financial markets preclude a forecaster from consistently outguessing the direction of interest rates.
• C) The level of training of forecasters is lagging an evermore sophisticated economy.
• D) (a) and (b) above

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Definitions:

Newly Introduced Product

A product that has recently been launched into the market, often featuring new or innovative characteristics.

Existing Product

A product that has already been developed and is available in the market for consumers.

Marginal Utility

The additional satisfaction or utility gained by consuming an additional unit of a good or service.

Consumer's Income

The total amount of money earned by an individual or household, influencing their purchasing decisions and capacity.