Multiple Choice
Rational expectations of inflation prevail when people
A) ignore the fact that inflation can change.
B) assume that future inflation will be like recent past inflation.
C) feel that inflation is rational.
D) use all the information they have as best they can.
Correct Answer:
Verified
Correct Answer:
Verified
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Q38: Static expectations of inflation prevail when people<br>A)
Q39: The less sticky are wages and prices<br>A)
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Q41: A decrease in the natural rate of
Q43: An increase in the natural rate of
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Q46: The position of the monetary policy reaction
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