Before Developing Inflation Expectations,Jenny Reads Through All Available Material on Consumer

question 151

Multiple Choice

Before developing inflation expectations,Jenny reads through all available material on consumer price indexes and producer price indexes.Later,she also reads through recent magazines and newspapers to identify factors that could affect the inflation rate in the coming days.Jenny can be said to have ________.

• A) adaptive expectations
• B) rational expectations
• C) marginal expectations
• D) conditional expectations

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Definitions:

America First Committee

A non-interventionist group formed in the United States prior to World War II that advocated for keeping the US out of the conflict.

Henry Ford

An American industrialist and the founder of Ford Motor Company, he revolutionized factory production with his assembly line methods.

Charles Lindbergh

An American aviator who gained fame for making the first solo transatlantic airplane flight in 1927.

Gerald P. Nye

A U.S. senator from North Dakota who is best known for his investigations into the munitions industry, leading to the Nye Committee hearings in the 1930s which were critical of America's involvement in World War I.