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xeze [42]
3 years ago
11

The idea of rational expectations suggests that :_________

Business
1 answer:
frozen [14]3 years ago
4 0

Answer:C

Explanation:The theory believes that because people make decisions based on the available information at hand combined with their past experiences, most of the time their decisions will be correct.

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In The Federalist paper number 10, James Madison expressed concern over the possibility that both majority and minority factions
irina1246 [14]
A because it’s considered background info
7 0
2 years ago
Calculate GDP loss if equilibrium level of GDP is $8,000, unemployment rate 8.8%, and the MPC is 0.80. Hint: (Use Okun's law to
stich3 [128]

Answer:

Loss of gdp = 7.6%

Eliminate gdp loss = 121.6

Explanation:

According to Okun's law , 12% loss of gdp.

Natural rate of unemployment=5%

Cyclical unemployment = Actual unemployment - Rate of Unemployment

Cyclical unemployment = 8.8% - 5%

Cyclical unemployment =3.8%

Loss of gdp = 3.8%(2)

Loss of gdp = 7.6%

Loss of gdp = (7.6%(8,000)

Loss of gdp = 608

Spending multiplier = 1/(1 - mpc)

Spending multiplier = 1/(1 - 0.8)

Spending multiplier = 1/ 0.2

Spending multiplie = 5

So,

Eliminate gdp loss = 608/5

Eliminate gdp loss = 121.6

5 0
3 years ago
A department store sells refrigerators from four manufacturers: 40% from Company A, 25% from Company B, 15% from Company C, and
Rufina [12.5K]

Answer:

A: 0.1475 , B: 0.3389

Explanation:

a. Probability Refrigerator purchased from store lasts more than 15 years :

Prob(refrigerator purchase from A) and Prob(refrigerator from A life > 15 years) + .........Prob(refrigerator purchase from D) and Prob(refrigerator from D life >15 years)

(0.40x0.1)+(0.25x0.20)+(0.15x0.05)+(0.20x0.25) = 0.04+0.05+0.0075+0.05 = 0.1475  

b. Refrigerator last > 15 years given , Probability it is from B :

[ Prob (B Purchase) . Prob (life > 15, given from B) ] / Prob (Life > 15)

P (B/15) = [P(B).P(15/B)]  / [P15]          {Bayes Theorum}

= [(0.25)(0.20)] / 0.1475  = 0.05 / 0.1475

= 0.3389

5 0
3 years ago
A temporary association organized to perform a specific task requiring a large amount of capital is known as a(n)
lianna [129]

Answer:

Syndicate

Explanation:

4 0
2 years ago
________ appeals help con­sumers make purchase decisions by offering factual informa­tion that encourages consumers to evaluate
Helen [10]

Answer:

Informational appeals

Explanation:

Informational appeals are an effective way to show and explain your product or service to your potential customers. A company usually uses three types of informational appeal, or a mixture of the three:

  1. highlight your product's benefits or attributes
  2. make a product demonstration or comparison against its competitors
  3. use celebrity testimonials, or regular people testimonials (depends on the budget)
7 0
3 years ago
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