Answer to Question #97019 in Macroeconomics for Achala Bandara

Question

Weather forecasters know they are making future predictions based only on past and present observations. What if a colleague told you that an investment in that new startup was a sure thing?

Answer 1

Investment requires one to make decisons based on present and past information about a particular field. This allows one to make relevant changes and plan for future developments. Since weather forecasters make future predictions based only on past and present observations this makes it a sure thing for investment.