Multiple Choice
If market participants notice that a variable behaves differently now than in the past,then,according to rational expectations theory,we can expect market participants to
A) change the way they form expectations about future values of the variable.
B) begin to make systematic mistakes.
C) no longer pay close attention to movements in this variable.
D) give up trying to forecast this variable.
Correct Answer:
Verified
Correct Answer:
Verified
Q35: Using the Gordon growth model,a stock's current
Q36: Using the one-period valuation model,assuming a year-end
Q37: According to rational expectations<br>A)expectations of inflation are
Q38: The elimination of unexploited profit opportunities requires
Q39: According to the efficient markets hypothesis,the current
Q41: The efficient markets hypothesis indicates that investors<br>A)can
Q42: In the one-period valuation model,the value of
Q43: You read a story in the newspaper
Q44: If a market participant believes that a
Q45: Using the one-period valuation model,assuming a year-end