"All available information" in the definition of rational expectations means that
a. agents use all possible information that could be out there.
b. agents use all possible public information that could be out there.
c. agents use all information that is relevant.
d. agents use all information that is available in which the marginal benefits of the information are greater than the marginal costs of gathering the information.
D
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Which of the following is NOT one of the determinants of the gains of adopting a single currency?
A) A well-synchronized business cycle involving all member countries B) The possibility of factors of production to freely move across borders C) The willingness and ability of member countries to design policies to address regional imbalances that may develop D) Widening the common market by allowing other countries to join E) None of the above.
A cartel is likely to last longer if
A) more new firms enter the market. B) the profits of participating members are relatively stable. C) market prices vary more over time. D) there are more firms in the industry.