If investors ________, we would assume that do not make systematic mistakes when forecasting exchange rates

A) have rational expectations
B) have complete knowledge of all possible bid and ask quotes
C) know that interest rate differentials provide information about the intensity of devaluations
D) anticipate events that occur

Answer: A

Business

You might also like to view...

Patents discourage companies from committing themselves to extensive basic research.

a. true b. false

Business

Which of the following statements refer to the objective criteria when evaluating secondary data?

A) Data should be reliable and generalizable to the problem at hand. B) Syndicated firms periodically update census data. C) The objective will determine the relevance of the data. Reconfigure the data to increase their usefulness, if possible. D) Assess accuracy by comparing data from different sources.

Business