If Firms and Households Form Their Expectations About Inflation by Looking

question 95

Multiple Choice

If firms and households form their expectations about inflation by looking at past inflation,this form of expectations formation is known as ________ expectations.

• A)adaptive
• B)forward-looking
• C)rational
• D)perfect

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Definitions:

Instrumental Values

Values that influence the means to achieving an end, such as ambition and efficiency, guiding how we achieve our goals.

SMART Goals

Goals that are Specific, Measurable, Achievable, Relevant, and Time-bound, providing clear direction and facilitating goal attainment.

Time Frame

A specified period in which something occurs or is planned to take place.

Terminal Values

End goals or objectives that individuals or organizations aim to achieve, reflecting their core beliefs and ideals.