The absolute forecast error of a currency is ____, on average, in periods when the currency is more ____.
A) lower; volatile
B) higher; stable
C) lower; stable
D) none of the above

Question

Quizplus · Accepted Answer

The absolute forecast error of a currency is typically lower on average in periods when the currency is more stable, as stable conditions make it easier to predict future movements.

The Absolute Forecast Error of a Currency Is ____, on Average