If F_t Denotes the Forecast of Y_t+1 Made at Time

question 24

Multiple Choice

If f_t denotes the forecast of y_t+1 made at time t, then the forecast error is given by:

• A)e_t+1 = f_t/y_t+1.
• B)e_t+1 = y_t+1/f_t.
• C)e_t+1 = y_t+1 + f_t.
• D)e_t+1 = y_t+1 - f_t.

---

Definitions:

Dependency Theory

Views economic underdevelopment as the result of exploitative relations between rich and poor countries.

Modernization Theory

Holds that economic underdevelopment results from poor countries lacking Western attributes, including Western values, business practices, levels of investment capital, and stable governments.

Development Theory

An extensive category of theories that seek to explain the processes, strategies, and mechanisms by which societies progress economically, socially, and politically.

Global Spending Priorities

The allocation and distribution of financial resources across various sectors globally, influenced by economic policies, societal needs, and international agreements.