When market participants have adaptive expectations
A) they use all information available to them.
B) they only slowly adjust their expectations to news which could affect prices or returns.
C) they are more likely to make accurate forecasts than if they have rational expectations.
D) they are able to forecast interest rates more accurately than inflation rates.
B
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The United States is currently a net debtor nation. This means that
A) U.S. consumers have a great variety of foreign goods available to them. B) the U.S. economy is in serious trouble if government policies don't change quickly. C) capital outflows from the U.S. are greater than inflows. D) the U.S. is seen as a poor investment by foreign citizens and firms.
The four categories of final users of GDP are:
A. households, firms, governments, and the foreign sector. B. businesses, corporations, firms, and farms. C. businesses, firms, governments, and the foreign sector. D. households, the Federal Reserve, governments, and the foreign sector.