If Expectations Are Formed Adaptively,then People

question 5

Multiple Choice

If expectations are formed adaptively,then people

• A)use more information than just past data on a single variable to form their expectations of that variable.
• B)often change their expectations quickly when faced with new information.
• C)use only the information from past data on a single variable to form their expectations of that variable.
• D)never change their expectations once they have been made.

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Definitions:

Preponderance of the Evidence

The standard of proof required in most civil cases, meaning that it's more likely than not that the claim is true.

Appellate Courts

Judicial bodies that review and rule on the decisions of lower courts.

Appeal

The process of applying to a higher court for a reversal of the decision of a lower court.

De Novo Review

A legal term referring to a court's review of a matter without regard for the previous court's findings, effectively starting anew.