According to the Theory of Rational Expectations, Errors in Predicting

question 53

Multiple Choice

According to the theory of rational expectations, errors in predicting inflation will

• A) be biased upward more often than not.
• B) be purely random.
• C) tend to be biased downward when inflation is rising, and tend to be biased upward when inflation is falling.
• D) tend to be biased upward when inflation is rising, and tend to be biased downward when inflation is falling.

---

Definitions:

Personal Brand

The unique combination of skills, experiences, and personality that one presents to the world, especially in professional contexts.

Newsfeeds

Digital streams of content updates from various sources, viewed on social media or news aggregator platforms.

Emoticons

Graphic symbols or icons used in digital communication to express emotions or sentiments, typically resembling facial expressions.

Business Communications

The process of exchanging information and ideas inside and outside of a company to achieve organizational goals and improve relationships.