Overshooting occurs because:
a. expectations adjust slower than prices.
b. expectations adjust at the same rate as prices.
c. expectations adjust faster than prices.
d. expectations do not adjust.
Ans: c. expectations adjust faster than prices.
Economics
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A) induce a greater degree of specialization. B) are evidenced by higher opportunity costs of production. C) are a result of absolute advantage. D) are few and far between.
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If we assume that a unit of capital will last indefinitely, the marginal rate of return on investment equals the marginal revenue product of capital divided by its marginal resource cost
a. True b. False
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