Which of the Following Are Implications of Rational Expectations

question 66

Multiple Choice

Which of the following are implications of rational expectations?

• A)As new information becomes available, market participants should adjust expectations accordingly.
• B)Recent years are weighted more heavily than earlier years.
• C)If there is a change in the way a variable moves, the way in which expectations of the variable formed will also change
• D)both a and c are correct.

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Definitions:

Canada Revenue Agency

The federal agency responsible for administering tax laws for the Government of Canada and for most provinces and territories.

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Individuals or companies that provide services or perform tasks on behalf of another entity under the terms of a contract, rather than being employed directly.

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Control Over Work

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