When market participants have rational expectations,
A) they use all information available to them.
B) they only slowly adjust their expectations to news which could affect prices or returns.
C) they are less likely to make accurate forecasts than if they have adaptive expectations.
D) they are able to forecast interest rates more accurately than inflation rates.
Correct Answer:
Verified
Q5: If market participants rely only past stock
Q6: The gap between the yield on a
Q7: When market participants use all available information
A)market
Q8: If traders in a market have rational
Q9: Which of the following statements is true
Q11: Which of the following is NOT a
Q12: George is trying to forecast the future
Q13: When market participants have rational expectations,
A)the information
Q14: If a company's sales begin to fall
Q15: Expectations of asset values by participants in
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