If Someone Asked You to Predict the Price of Gas

question 35

Multiple Choice

If someone asked you to predict the price of gas in a month, and you decided to guess by adding a few cents to the current price of gas, your answer would exhibit:

• A)anchoring.
• B)time inconsistency.
• C)rational expectations.
• D)transitivity.

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Definitions:

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders’ equity at a specific point in time.

Liabilities

Financial obligations or debts a company owes to external parties or entities.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, financial activities, and investment activities.

Balance Sheet

A financial statement that represents a company's assets, liabilities, and shareholders' equity at a specific point in time.