Rational Expectations Forecast Errors Will on Average Be ________ and Therefore

question 83

Multiple Choice

Rational expectations forecast errors will on average be ________ and therefore ________ be predicted ahead of time.

• A) positive; can
• B) positive; cannot
• C) negative; can
• D) zero; cannot

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Definitions:

Auditory Cortex

Portion of the cerebral cortex that is responsible for the conscious sensation of sound; in the dorsal portion of the temporal lobe within the lateral fissure and on the superolateral surface of the temporal lobe.

Vestibulocochlear Nerve

The eighth cranial nerve that transmits sound and equilibrium (balance) information from the inner ear to the brain.

Temporal Lobe

A region of the cerebral cortex involved in processing auditory information and encoding memory.

Tympanic Membrane

Also known as the eardrum, a thin membrane that divides the external ear from the middle ear and vibrates in response to sound waves.