Are forecasts based on rational expectations always correct

Reference no: EM132180403

Question: 1. Are forecasts based on rational expectations always correct?

2. Why might the theory of rational expectations be more relevant in explaining the behavior of financial markets than the effect of monetary policy on the level of output and employment?

Reference no: EM132180403

Questions Cloud

How would you argue for the preservation of these sites : Classroom discussion in an online environment requires your active participation with classmates and your instructor to create robust interaction and dialogue.

Discuss about the random change in the money supply : If the authorities bring about a random change in the money supply this will have a short run effect on output and employment, but if they vary the money supply

Marriott to employ this strategy : Identify Porter's generic strategy and explain what activities allow Marriott to employ this strategy.

Equal credit opportunity act : Explain whether a court would find that the bank violated the Equal Credit Opportunity Act.

Are forecasts based on rational expectations always correct : Are forecasts based on rational expectations always correct? Why might the theory of rational expectations be more relevant in explaining the behavior.

Identify characteristics of LGEs human resources strategy : Explain the organization and purpose of chaebols. Identify the characteristics of LGE’s human resources strategy.

Why might nations not wish to specialize even : Why might nations not wish to specialize even when they have a comparative advantage in the production of some goods com-pared with other countries?

Why do you think mncs continuously assess possible forms : Why do you think MNCs continuously assess possible forms of multinational restructuring, such as foreign acquisitions or downsizing.

Why is a banking sector important for developing countries : Why is an efficient banking sector important for developing countries? Why is unemployment disguised; when a worker's marginal product is zero?

User Account

All Pages