A Rational Expectation of Inflation Is

question 168

Multiple Choice

A rational expectation of inflation is

• A) how economists make perfect forecasts of inflation.
• B) how unexpected inflation affects the economy.
• C) why unexpected inflation redistributes income.
• D) a forecast of inflation that uses all relevant information.

---

Definitions:

Liberation of Vietnam

The process of Vietnam gaining independence from colonial rule, particularly from France and later the United States, culminating in the reunification of North and South Vietnam in 1975.

Henry Cabot Lodge

An American Republican Senator known for his opposition to the Treaty of Versailles and the League of Nations after World War I.

US Ambassador

An official representative of the President of the United States accredited to a foreign government or international organization.

Saigon

Formerly the capital of South Vietnam, now known as Ho Chi Minh City, it was a focal point during the Vietnam War.