Author Question: Forecasts based on the extrapolation of observed trends and relationships are likely to be accurate, ... (Read 23 times)

Mimi · **on:** Jun 30, 2018

Forecasts based on the extrapolation of observed trends and relationships are likely to be accurate, if ________.

A) changes in expectations are properly considered
B) policy actions are anticipated
C) economic behavior is guided by rational expectations
D) policy changes are understood to be permanent

Question 2

Referring to the table above, the present discounted value of initial wealth plus total income is ________.

A) 67,308
B) 71,200
C) 70,400
D) 68,462