When market participants have rational expectations, the deviation of the expected price from the actual future price is
A) zero.
B) predictable, provided all relevant information is made use of.
C) not predictable.
D) predictable under certain circumstances, but not under others.
C
Economics
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During 1998-2001 the government budget
A) moved deeper into deficit and caused a substantial increase in borrowing from foreign investors. B) moved into surplus but the beneficial effect was largely offset by a drop in household saving. C) was balanced and the inflow of capital from foreign lenders was finally stopped. D) moved into surplus and resulted in large capital outflows from the United States.
Economics