When Market Participants Have Rational Expectations, the Deviation of the Expected

question 3

Multiple Choice

When market participants have rational expectations, the deviation of the expected price from the actual future price is

• A)zero.
• B)predictable, provided all relevant information is made use of.
• C)not predictable.
• D)predictable under certain circumstances, but not under others.

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Definitions:

Business Representative

An individual who acts on behalf of a business, often in negotiations or as a point of contact.

Contract Negotiations

The process of discussing the terms of a contract between parties with the aim of reaching an agreement that is acceptable to all involved.

Grievances

Complaints or concerns raised by employees regarding workplace conditions, policies, or treatment that they believe to be unfair.

Collective Bargaining

A process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights.