According to the Theory of Adaptive Expectations, If the Inflation

question 83

Multiple Choice

According to the theory of adaptive expectations, if the inflation rate has been 4.2 percent for the last ten years, people will expect next year's inflation rate to be:

• A)4.2 percent.
• B)higher than 4.2 percent.
• C)lower than 4.2 percent.
• D)0;that is, they will expect no inflation.
• E)8.4 percent.

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Definitions:

Qualitative

Qualitative refers to descriptions or distinctions based on qualities rather than quantities, often used in research to assess non-numerical data.

Quantitative

Pertaining to data or research that deals with quantities, numbers, and statistical analysis, rather than interpretations or qualitative judgments.

Associative

Related to or involving the combination or co-occurrence of elements or items within a group or category.

Judgmental

Relating to or involving the use of personal judgment or opinion to make decisions or form conclusions.