This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: People are said to have rational expectations if they (Read 14 times)

Hungry!

  • Hero Member
  • *****
  • Posts: 1,071
on: Apr 19, 2019

Question 1

The rational-expectations hypothesis suggests that errors in forecasting future inflation rates are due to


◦ random, unpredictable events.
◦ the fact that people assume that the current inflation rate will continue into the future.
◦ the fact that people consistently underestimate future inflation.
◦ the fact that people consistently overestimate future inflation.

Question 2

People are said to have rational expectations if they


◦ use all available information in forming their expectations.
◦ assume that this year's inflation rate will be equal to the average inflation rate over the past 10 years.
◦ merely guess at the inflation rate.
◦ assume that this year's inflation rate will be the same as last year's inflation rate.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Hungry! on Apr 19, 2019

sarah_brady415

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 58% of students answer this correctly


Hungry!

  • Hero Member
  • *****
  • Posts: 1,071
Reply #2 on: Apr 19, 2019
TY


sarah_brady415

  • Sr. Member
  • ****
  • Posts: 328
Reply #3 on: Apr 19, 2019
You're welcome


« previous next »
 

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

More People Are Living in Cities More People Are Living in Cities
In the 1800s, most people were poor, and formal education beyond the first several grades was a ... In the 1800s, most people were poor, and formal education beyond the first several grades was a ...
Faith Ringgold, God Bless America, No. 13 from the series American People. Faith Ringgold, God Bless America, No. 13 from the series American People.
Vocational interests seem to be established well before adulthood, and young people of all ages ... Vocational interests seem to be established well before adulthood, and young people of all ages ...
Poverty rates have declined in the last 50 years, and the biggest decline has been for people 65 and ... Poverty rates have declined in the last 50 years, and the biggest decline has been for people 65 and ...
Why do people hate mathematics? Why do people hate mathematics?
Video: Causes of Angina

For a complete list of videos, visit our video library