Computer Forecasting Models Are Most Accurate at Predicting the Economy

question 61

Multiple Choice

Computer forecasting models are most accurate at predicting the economy when

• A) inflation is accelerating.
• B) there is a turn in the business cycle.
• C) economic conditions are relatively stable.
• D) supply shocks impact the economy.

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Definitions:

Angel Investor

A well-off individual who invests in a start-up, commonly in return for a stake in equity or convertible debt.

Due Diligence

An investigation, audit, or review performed to confirm the facts of a matter under consideration, commonly used in business for verifying financial records before entering into a proposed transaction.

Exit Plan

A strategic plan developed by business owners and investors to sell their stake in a company to realize their investment's value.

American Research and Development

One of the early American venture capital firms, ARD is known for its investment in companies such as Digital Equipment Corporation.