When People Form Expectations About Future Inflation Based on Last

question 28

Multiple Choice

When people form expectations about future inflation based on last period's inflation rate, it is said that expectations are formed:

• A) analytically.
• B) using the rule of Law.
• C) using a rule of thumb.
• D) rationally.

---

Definitions:

Resting Point

A state or condition where no further action or change is occurring, often used in physical or psychological contexts to describe equilibrium.

Justified Text

Text that is aligned evenly along both the left and right margins, creating a clean, uniform block of text in a document.

Denser Look

A visual style or characteristic that appears compact, with components closely arranged or rich in detail.

Formal Look

A style or appearance that adheres to traditional standards of professionalism and polish.