An Expectation May Fail to Be Rational If

question 7

Multiple Choice

An expectation may fail to be rational if

• A)relevant information was not available at the time the forecast is made.
• B)relevant information is available but ignored at the time the forecast is made.
• C)information changes after the forecast is made.
• D)information was available to insiders only.

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Definitions:

Economic Regulation

The imposition of rules by government, aimed at modifying the economic behavior of individuals, firms, or industries to achieve public policy objectives.

Article I

The section of the U.S. Constitution that establishes the legislative branch of the federal government, granting Congress the power to enact laws.

Legislative Power

The authority given to a legislative body to make, amend, or repeal laws.

Federal Courts

Specialized courts in the United States with the power to try cases related to federal law and constitutional issues.