If Market Participants Notice That a Variable Behaves Differently Now

question 40

Multiple Choice

If market participants notice that a variable behaves differently now than in the past,then,according to rational expectations theory,we can expect market participants to

• A)change the way they form expectations about future values of the variable.
• B)begin to make systematic mistakes.
• C)no longer pay close attention to movements in this variable.
• D)give up trying to forecast this variable.

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Definitions:

Uniform Donor Card

A legal document that states a person’s wish to make a gift upon death of one or more organs for medical research, organ transplants, or placement in a tissue bank.

Occupational Safety

Practices and policies designed to protect workers from hazards and risks in the workplace.

Health Administration

The field and practice of overseeing and managing healthcare systems, hospitals, and other health services organizations.

Misfeasance

The performance of a lawful action in an illegal or improper manner.