Multiple Choice
Suppose the inflation rate of a country falls from 8 percent during 2002-2004 to 6 percent in 2005-2007, under the adaptive expectations hypothesis what will the expected rate of inflation at the beginning of 2008?
A) 2 percent
B) 4 percent
C) 6 percent
D) 8 percent
Correct Answer:
Verified
Correct Answer:
Verified
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