Suppose the rate of inflation over the last 5 years has been around 4-5%. Investors use an inflation expectation of that range when making investment decisions. The decision of the investors is based on the theory of _____
a. absolute advantage
b. rational expectations
c. adaptive expectations
d. sticky wages
c
Economics
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If the four-firm concentration ratio for an industry equals 100 percent, then definitely
A) the Herfindahl-Hirschman Index (HHI) equals 10,000. B) the industry is a monopoly. C) a small number of firms are in the industry. D) there are no barriers to entry into the industry.
Economics
What is the difference between "shutting down temporarily" and "exiting the industry"?
What will be an ideal response?
Economics