According to Rational Expectations Theory,forecast Errors of Expectations

question 98

Multiple Choice

According to rational expectations theory,forecast errors of expectations

• A)are more likely to be negative than positive.
• B)are more likely to be positive than negative.
• C)tend to be persistently high or low.
• D)are unpredictable.

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Definitions:

Equity

Equity represents the ownership value held in an asset or a business by its shareholders or owners, calculated as the difference between the value of the assets and the value of the liabilities.

Net Income

The total earnings of a company after subtracting all expenses, including taxes, from its total revenues.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Acquiring And Disposing

The processes involved in obtaining and getting rid of assets, including purchasing or receiving assets and selling or disposing of them.