If market participants notice that a variable behaves differently now than in the past,then,according to rational expectations theory,we can expect market participants to
A) change the way they form expectations about future values of the variable.
B) begin to make systematic mistakes.
C) no longer pay close attention to movements in this variable.
D) give up trying to forecast this variable.
Correct Answer:
Verified
Q53: The efficient markets hypothesis suggests that if
Q54: If a forecast made using all available
Q55: The theory of rational expectations,when applied to
Q56: Another way to state the efficient markets
Q57: An expectation may fail to be rational
Q59: According to rational expectations
A)expectations of inflation are
Q60: On rainy days,Jennifer's commute time to work
Q61: The efficient markets hypothesis suggests that investors
A)should
Q62: You read a story in the newspaper
Q63: Stock market crashes lead us to believe
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents