Which of the Following Statements Will Likely Be Correct When

Multiple Choice

Which of the following statements will likely be correct when inflation has been persistent?

A) Higher unemployment rates will be associated with lower inflation rates.
B) Workers and firms ignore past inflation.
C) The current inflation rate will not depend heavily on past inflation.
D) Lower unemployment rates will be associated with higher inflation rates.
E) The expected inflation rate for a given year will equal the previous year's actual inflation rate.