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The Assumption of Rational Expectations for Inflation Means That People

question 58

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The assumption of rational expectations for inflation means that people will form their expectations of inflation by:


Definitions:

Federal Level

Pertains to the national government operations or regulations, as opposed to state or local levels.

State Level

Pertaining to governmental authority and matters that are handled by individual state governments, as opposed to the federal government.

Uniform Law

A law created to account for the variability of laws among states; serves to standardize the otherwise different interstate laws. Also called model law.

State Legislatures

Elected bodies at the state level in the United States responsible for making laws.

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