For This Question,assume That Individuals Form Expectations of Inflation According

question 14

Multiple Choice

For this question,assume that individuals form expectations of inflation according to the following equation πᵉt = θπt₋₁.From 1970 on,the value of θ for this equation

• A)increased over time and approached 1.
• B)decreased over time and approached zero.
• C)remained constant at zero.
• D)remained constant at negative one.
• E) none of the above