According to Adaptive Expectations Theory,if the Last Three Years of Inflation

question 92

Multiple Choice

According to adaptive expectations theory,if the last three years of inflation were 3%,3%,and 2%,respectively,one would expect inflation the following year to be:

• A) 0%.
• B) 3%.
• C) 1%.
• D) 4%.
• E) 2%.

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