If People Assume That Future Rates of Inflation Will Follow

question 136

Multiple Choice

If people assume that future rates of inflation will follow the pattern of inflation rates in the past,they are said to have

• A)rational expectations.
• B)adaptive expectations.
• C)unstable expectations.
• D)accommodative expectations.

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Definitions:

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Having adequate safety measures or defenses in place against harm or danger.

Duty To Warn

An ethical and legal responsibility of certain professionals to disclose information to prevent harm to a third party.

Permission To Warn

A principle that may allow a professional, under certain conditions, to breach confidentiality in order to warn a third party of potential danger.

Laws

The system of rules that are created and enforced through social or governmental institutions to regulate behavior.