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:

Product Liability

The legal obligation of manufacturers and sellers to ensure their products are not defective or dangerous, and to compensate any harm to consumers from such products.

Restatement (Third) of Torts

A legal document that provides an updated overview and clarification of the law of torts in the United States.

Analysis

The detailed examination or study of something in order to understand its nature or to determine its essential features.

Unreasonably Dangerous

Describes a product or action that poses a risk of harm to people or property that exceeds what would be anticipated by the ordinary consumer.