Multiple Choice
People have a strong incentive to form rational expectations because
A) they are guaranteed of success in the stock market.
B) it is costly not to do so.
C) it is costly to do so.
D) everyone wants to be rational.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q4: In the Gordon growth model,a decrease in
Q5: If expectations are formed adaptively,then people<br>A)use more
Q6: Stock market crashes lead us to believe
Q7: An expectation may fail to be rational
Q8: If additional information is not used when
Q10: You have observed that the forecasts of
Q11: Using the Gordon growth formula,if D1 is
Q12: If during the past decade the average
Q13: Using the Gordon growth model,if D1 is
Q14: Tests used to rate the performance of