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If Inflation Is 3 Percent Last Year and 2 Percent

Question 86

Multiple Choice

If inflation is 3 percent last year and 2 percent this year an individual who follows extrapolative expectations, what is the inflation rate that the individual is likely to for the coming year?


A) 0 percent
B) 1 percent
C) 3 percent.
D) 5 percent.

Correct Answer:

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