When People Use Recent Information to Gradually Adjust Their Forecasts

question 59

Multiple Choice

When people use recent information to gradually adjust their forecasts of inflation, they are said to have:

• A) static expectations.
• B) adaptive expectations.
• C) rational expectations.
• D) spiraling expectations.

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Definitions:

Unilateral

Describes actions or agreements made by one party without the necessity for acceptance or agreement from another.

Bilateral

Pertains to a contract or agreement involving two parties who each have obligations towards each other.

Ohio Uniform Commercial Code

A collection of laws that govern commercial transactions in the state of Ohio, part of a larger uniform effort to harmonize the law of sales and other commercial transactions across the United States.

Federal Common Law

A body of law developed by the federal courts that applies nationwide, based on judicial decisions rather than statutes.