The Adaptive Expectations Hypothesis Implies That People

question 86

Multiple Choice

The adaptive expectations hypothesis implies that people

• A) adjust their expectations quickly to policy changes.
• B) expect the next period to be pretty much like the recent past.
• C) will always be correct in their forecast for the next period.
• D) change their expectations about the future if policy changes.

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Definitions:

Butan-1-Ol

An alcohol with the chemical formula C4H9OH, represented by a four-carbon chain with the -OH group attached to the first carbon.

Decan-1-Ol

An organic compound and a fatty alcohol, consisting of a ten carbon chain terminating in a hydroxyl group.

IUPAC Name

The IUPAC Name refers to the systematic naming convention for chemical compounds as designated by the International Union of Pure and Applied Chemistry.

Hydrophilic

Having an affinity for water; capable of interacting with or dissolving in water.