Assume That Expected Rates of Inflation Over the Next 5

question 51

Multiple Choice

Assume that expected rates of inflation over the next 5 years are 4 percent,7 percent,10 percent,8 percent,and 6 percent,respectively.What is the average expected inflation rate over this 5-year period?

• A) 6.5%
• B) 7.5%
• C) 8.0%
• D) 6.0%
• E) 7.0%