Business
Business, 24.02.2020 19:50, 49Janett

When market participants have rational expectations

a. they only slowly adjust their expectations to news which could affect prices or returns.
b. they are less likely to make accurate forecasts than if they have adaptive expectations.
c. they use all information available to them.
d. they are able to forecast interest rates more accurately than inflation rates.

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When market participants have rational expectations

a. they only slowly adjust their ex...

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