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Author Question: Rational expectations assumes that individuals A) can accurately predict the future. B) make ... (Read 109 times)

anshika

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on: Jun 30, 2018
Rational expectations assumes that individuals
 
  A) can accurately predict the future.
  B) make predictions based on the past behavior of the economy.
  C) form their predictions of macroeconomic variables randomly.
  D) have perfect foresight.
  E) none of the above

Question 2

The borrowing rate is
 
  A) the rate at which consumers and firms can borrow.
  B) a nominal interest rate.
  C) determined by monetary policy.
  D) a risk premium.


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Dominic

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Reply #1 on: Jun 30, 2018
Answer to Question 1

E

Answer to Question 2

A


anshika

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

ashely1112

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Reply 3 on: Yesterday
Wow, this really help

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