Multiple Choice
After experiencing about 4 percent inflation the last 10 years, Americans start to believe that the inflation for this year is also 4 percent. This belief regarding the future path of inflation based on previous inflation is called:
A) intuitions of inflation.
B) expectations of inflation.
C) rational expectations.
D) a self fulfilling prophecy.
Correct Answer:
Verified
Correct Answer:
Verified
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