If a Forecaster Predicts a Rate of Economic Growth That

question 30

Multiple Choice

If a forecaster predicts a rate of economic growth that is smaller than the average of the predictions of other forecasters, you should expect to see that forecaster also issue forecasts

• A) for the deficit and interest rates that are higher than the average.
• B) for the deficit that are higher than the average and forecasts for interest rates that are higher or lower than the average, depending on the reason slow growth is expected.
• C) for the deficit and interest rates that are lower than the average.
• D) for the deficit that are lower than the average and forecasts for interest rates that are higher than the average.
• E) of the deficit and interest rates that are nonetheless close to the average.

---

Definitions:

Member Country

A country that is part of a larger group or organization, such as the United Nations, the European Union, or any other international coalition with specific membership criteria.

Free Trade Agreement

A pact between two or more nations to reduce barriers to imports and exports among them.

Market-Oriented Economy

A type of economic system where supply and demand from private households and businesses shape the production of goods and services, with minimal government intervention.

Immigration

The process of permanently relocating to a country that is not one's own.