The View That Past Correlations May Not Apply in the Future

question 87

Multiple Choice

The view that past correlations may not apply in the future because policy changes may impact expectations and behavior is consistent with:

• A) adaptive expectations.
• B) evolutionary adjustment mechanisms.
• C) the Lucas critique.
• D) the relative adjustment critique.

---

Definitions:

Technology Based Information Systems

Systems that employ technology for collecting, processing, storing, and distributing information, facilitating various organizational functions.

Accounting

The systematic process of recording, measuring, and communicating information about financial transactions.