Which of the following is true of squared forecast errors?
A. An error of +2 yields a greater loss than an error of ?2.
B. An error of ?2 yields a greater loss than an error of +2.
C. An error of ?2 or +2 yields the same loss.
D. Loss from positive and negative forecast errors cannot be compared.
Answer: C
Economics
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If consumers' expectations about future income are very optimistic, then we should expect
a. the consumption function to shift downward. b. consumers to move up along the consumption function. c. the consumption function to shift upward. d. consumers to move down along the consumption function.
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